New currency deal simplifies RMB transactions

MACAO: Officials of the People's Bank of China and the Monetary Authority of Macao Special Administrative Region (SAR) last week signed a historic agreement aimed at easing the restrictions on RMB business conducted by Macao banks.

According to the agreement, officially entitled the "Memorandum of Supplementary Cooperation Relating to Macao RMB Business", individuals can now exchange 20,000 yuan per transaction at Macao banks, a substantial increase on the previous level of just 6,000 yuan.

For the first time, Macao residents will also be allowed to use RMB cheques to pay up to 50,000 yuan ($7,322) per account per day for consumer spending in neighboring Guangdong, part of the Chinese mainland. The number of approved agents entitled to exchange RMB for Pataca (the local Macao currency) has also been increased.