China will soon allow non-financial institutions in Beijing and Shanghai to provide currency exchange services to individuals.

The State Administration of Foreign Exchange (SAFE) says the move is aimed at meeting increasing demand from both local residents and foreigners.

The State Administration of Foreign Exchange (SAFE) says the move is aimed at meeting increasing demand from both local residents and foreigners. SAFE says Chinese residents will be permitted to buy or sell foreign currency through authorized money changers as part of their annual quota.

Local residents can exchange a maximum of 50-thousand US dollars per person, while foreigners have a daily limit of 500 US dollars. Money changers will be allowed to operate under their own name, or act as agents for banks with a license from SAFE. Exchange rates will be set with reference to central bank rules.