A Chinese citizen is allowed to exchange up to 20,000 U.S. dollars or equivalent of foreign currencies every year as of May 1.

China's State Administration of Foreign Exchange (SAFE) made the news public via its policy paper published on the official website.

The Chinese people can exchange foreign currencies within the 20,000-dollar quota with their own ID cards and explanation on the use of foreign currency to the banks.

For buyers who apply to exceed the quota, the banks will handle separate cases after checking their real usage, according to the SAFE.

China's forex reserve hit 853.6 billion U.S. dollars in February of 2006, ranking first in the world.

Source: Xinhua