Giving the current U.S. banking crisis, I’ve begun hearing warnings about keeping more than US$100,000 in any American bank.

You see, the Federal Deposit Insurance Corporation is a U.S. government agency that protects individual depositors against losses up to US$100,000 – but beyond that, you had better hope your bank isn’t going bankrupt.

A momentary thought crossed my mind: If you’re an expat in China, why not keep all your savings here? The value of the yuan has been rising against the U.S. dollar. And now, compared to U.S. banks, Chinese ones suddenly look more secure, as the All Roads Lead To China blog notes.

Then I had a serious then-again thought.

If all your savings are in yuan, how would you eventually get your money out of China?

There are serious complications to consider here. The web’s discussion threads and articles on this topic help, but good information is scattered and varied.

I decided to try to make sense of some of it, especially since getting money out of China is more than a cerebral exercise. There are plenty of working expats that are accruing savings from their China-based employers whether they like their currency in RMB or not.

Consider a bank transfer

You could transfer your money out of China via wire (after converting it to your desired foreign currency in China), but there is a fair amount of crimson red tape involved (and fees).

According to this article:

You are only able to send no more than your salary amount from the country… in some cases your salary may be less than you are actually paid so even if you are making 7000RMB/month, you might only be making 3000RMB as a salary and 4000RMB might be an accommodation allowance. Check your contract and ask your General Manager or Head Teacher how much you are able to send home… it does change from contract to contract. Note that by only paying 3000RMB as a salary the school is saving you a ton of money tax-wise.

Post #7 here suggested you are legally allowed to convert up to 70 percent of your Chinese salary to foreign currency. Personally, I do remember this clause from my contract with my former China employer – but I seem to remember it applied to how my employer paid me. I could get 70% of my salary in US dollars, for instance. But I might have been able to exchange the rest for US dollars if I had tried (I never did). At the very least, a Chinese friend could have done this for me.

Meanwhile, Innovatize, here, suggests that you have to prove you paid local taxes on your salary before exchanging it for US dollars. Oh, and be sure to keep your currency exchange receipts. The wiring bank may ask to see them.

Regarding all of this, I think an old China adage applies: If the bank you’re in won’t do it, try the bank down the street, which might.

“I went to the bank of China a few months ago to convert 13,000 Yuan into Euros and they told me it was hard for me to do and I would have to complete lots of paperwork and get a letter from my employer,” according to poster #7. “I left the bank and walked around the corner to another bank of China and they converted the money for me no problem.”

Try Western Union

After converting RMB to US dollars, try Western Union – though there are fees and there is a limit to how much you can send at any one time.

A few tips to remember:

• Someone has to be available to pick it up and process it on the other end.
• You need the EXACT name and address of the person you want to send it to. You can’t send it to yourself (I’ve tried).
• This site suggests signing up for frequent sender programs to save in the long run. “For example, Western Union has a Gold Card Member program where you can get points per the fees you pay,” it says. “Those points you can then redeem for items of value including money gift cards, DVD layers, watches, cameras, phones, and more.”

Stuff your suitcase with 20,000 RMB

And your wide-load wallet with 20,000 RMB. This thread suggests you can now take 20,000 RMB legally outside of China. But why stop there? Check your suitcase as baggage with half. And carry half through the metal detector. If either your body or your baggage is searched, you’re safe. Then again, you can start chalking up this lost baggage as the worst experience ever.

And just in case you get stopped and questioned, better dress the part. You’ve got a million-dollar home to buy, don’t you?

By the way, did we mention you’re on your way to graduating as a world-class mule?

Finally, Hong Kong is a great destination to do an exchange apparently, as there are favorable rates there and RMB is easily exchangeable. Clearly though, despite its strength, yuan still is not a world-class currency. So phone ahead to make sure once you get wherever you’re going, you can do the exchange you want. You can, for instance, exchange RMB in Vietnam with ease. When I was at Narita airport in Tokyo a few weeks ago, though, it was as good as Monopoly money.

Exchange it first, then cross the border

Post #4, here, suggested you can carry up to US$10,000 across various international borders without having to declare it. This guy said you could do that travelling to Australia, for example.

So, I’ve written enough here. But I still want to know: How will you get your money out of China?

Related:

• Don’t Yearn for Yuan

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