It’s easy to open a yuan-denominated bank account with the Bank of China if you’re willing to travel to New York City or Los Angeles – two locations where the Bank of China will do this.
Investors are increasingly interested in diversifying away from the U.S. dollar (USD) and into alternative currencies. You don’t have to be a rocket scientist to know that the yuan (specifically, the Renminbi (RMB)) is going to play an increasingly important role in the global economy. Heck, Russia doesn’t even do its business with China in USD anymore, they use the yuan and ruble.
Opening a Chinese Money Bank Account
China’s currency is the renminbi, colloquially known as the “yuan” (just like we might say “buck” or “greenback”). When you go to open up a Chinese bank account, you will be converting your U.S. dollars into Renminbi (RMB). You will need a minimum of $500 USD in order to open the account. So here are the basic facts, summarized, on how to open a yuan-based bank account:
- Minimum of $500 USD to open an RMB deposit account.
- You need to bring your SSN card and two valid I.D. documents.
- You fill out an application, a W-9 form, and a signature card.
- Currently, these are only savings accounts – not checking accounts.
- You can only fund your RMB account; you cannot withdraw renminbi cash from it yet.
- The accounts are insured by the FDIC.
- You can transfer RMB back and forth from your RMB account in China or Hong Kong.
- For more info, contact the bank at (212) 935-3101 ext. 313. And at www.bocusa.com.
You Should Open A Chinese Bank Account
You might be reading this and wondering why you should open a Chinese bank account. Well, I guess I’d ask you why you’re still reading, then. You must be interested!
In case you haven’t noticed, more and more people are setting their kids up with Chinese language lessons and more and more Americans are making China a must-go-to destination either for work, travel or other pursuits. China’s basically going to take over the world (read: mild-mannered sarcasm), in a good way, and it’s about time to start to prep yourself for that possibility.
As Niall Ferguson claims, the tipping point for the U.S. may be coming soon. Don’t worry, it’s not an apocalypse. But it’s something everyone will have to get used to.
Open a yuan-denominated bank account because (1) you want to diversify your USD and (2) you want to benefit when the yuan is allowed to increase much more in value again. Two sides of the same coin. If the yuan rises, you are protected from the fall in the USD; if the USD rises, well, you’re already protected and you should be thankful.
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