New foreign currency ceiling kick in

Starting Friday, Chinese residents may exchange up to US$50,000 a year from RMB to other currencies, state media reported. The new limit is more than double that of the previous annual limit of US$20,000. This is the central bank's latest move to ease foreign exchange rules for Chinese residents. Before the annual quota system was implemented last May, currency transactions were approved piecemeal. Individual foreign exchange transactions jumped 255% between May and November after the quota system was put in place. The new regulations will allow individuals to invest in financial products overseas through domestic financial institutions.