In mid June, State Administration of Foreign Exchange (SAFE) allowed three cities in Hainan, including Haikou, Sanya and Wanning, to pilot the Domestic and Foreign Currency Exchange Franchise Business to Individuals (or currency exchange service provided to individuals by non-financial institutions) . The move aims to facilitate currency exchange of tourists and thereby give a boost to the International Tourism Island campaign of Hainan. 
 
Since the Opinions of State Council on Promoting Hainan International Tourism Island was released, the tourism sector of Hainan has enjoyed strong growth and seen rising inflow of domestic and foreign visitors. As a result, there is an increasing demand for currency exchange services. In 2009, Hainan received 22.5033 visitors, among whom 0.5515 were from overseas. The tourism sector generated the foreign exchange earnings of USD277 million. The foreign currencies sold by individuals amounted to USD151.38 million; those bought by individuals USD134.85 million; those remitted by individuals USD207.60 million. Hainan has 83 authorized foreign exchange centers operated by financial institutions to offer foreign exchange business. The dollar amount of the foreign currencies exchanged in these institutions was USD33.76 million. According to the international practice, the market for currency exchange of individuals comprises of banks, licensed currency exchange shops run by non-financial institutions, and the authorized foreign exchange centers managed by financial institutions. Such a structure offers different options to meet different needs.
 
SAFE also approved the Investment Consultancy of Hainan Airlines to offer currency exchange services to individuals. This is the first time for Hainan to have a non-financial institution that gets the go-ahead to run such business. It marks a multi-dimensional market for currency exchange of individuals is taking shape in this province.
 
 
Editorial Message  
This site contains materials from other clearly stated media sources for the purpose of discussion stimulation and content enrichment among our members only.
whatsonsanya.com does not necessarily endorse their views or the accuracy of their content. For copyright infringement issues please contact editor@whatsonsanya.com