Travelex awarded foreign exchange licence in China

by Gill Montia

Story link: Travelex awarded foreign exchange licence in China

The world’s largest retail foreign exchange operator, Travelex, has secured a foreign exchange licence from the Chinese authorities.

The award is the first of its kind to a foreign company and signals a move towards the liberalisation of China’s foreign currency market, which is currently dominated by national banks.

It also presents significant growth opportunities for Travelex, which estimates that the market is worth $9.7 billion (£5.21 billion).

Previously, foreign currency exchange operators have not been allowed to have dealings with Chinese nationals.

The Bank of China decided which currencies foreign firms could deal in and state exchange-rate mechanisms had to be observed.

The new licence will allow Travelex greater freedom in the setting of exchange rates and increase the number of currencies it can sell.

It will also allow the company to expand its presence from six of the country’s airports and set up shop in city centres.

The licence legalises transactions with Chinese nationals but the sum has an annual restriction of £26,900 per individual.

Travelex describes China as a key territory for strategic growth and expects to double its presence in the country in the next twelve months.