We discuss how to get the most RMB from your foreign accounts, and how to spot a counterfeit bill.

RMBs 

Cash is still king in China, and for even large transactions such as tuition and rent, cash is still the preferred form of payment.  Obtaining RMBs outside of China remains difficult, but given the easy access to ATMs, this is not a concern.  The issue that remains, however, is how to get the best exchange rates for your foreign currencies.  While convenient, going through the international networks such as VISA or Mastercard can prove to be an expensive proposition as these networks charge a 1% currency exchange fee and this is IN addition to the 1 or 2% banks charge for the transaction.  These fees vary from bank to bank so be sure to check what the exact transactions fees are.  Bankrate.com offers a good table for the fees charged by various US banks http://www.bankrate.com/brm/news/cc/20050624b1.asp .

If you have a bank account that is participating in the Global ATM Alliance network, then you may withdraw RMBs from your accounts at any China Construction ATMs free of charge.  China Construction Bank (中国建设银行) are widely available with 3 locations in Tsinghua alone.  The list of banks participating in the Global ATM Alliance network are as follows:

1. Barclays (United Kingdom)
2. BNP Paribas (France)
3. Bank of America (United States)
5. China Construction Bank (China)
5. Deutsche Bank (Germany)
6. Santander Serfin (Mexico)
7. Scotiabank (Canada)
8. Westpac (Australia and  New Zealand)

China Construction ATM locations in Tsinghua University. Click for full-size image.

HSBC account holders may also withdraw money free of charge from their own network of ATMs.  However there are only a handful of HSBC ATM locations in Beijing.  The closest HSBC ATM location from Wudaokou is in Carrefour, Zhongguancun.

Traveler's checks are another cost effective means of obtaining RMBs as long as you can purchase traveler's checks with no extra surcharges.  A small transaction fee (0.5% ~1% in the case of American Express Travelers Cheques http://www.americanexpress.com/china/en/personal/travel/travelerscheques/faq.shtml) is levied to use the traveler's checks, but the exchange rate is often up to 2% better than exchanging cash.  Traveler's checks may be cashed at any Bank of China location.

Fraud:

Counterfeit money is a big problem in China (link1, link2).  Fake 100 and 50 kaui bills are commonly found, and fake 10,5, and 2 kuai bills in circulation are on the rise.  Beware of bill switch tactics where a unscrupulous vendor informs you that your bill is counterfeit, but really has just switched the bill you have handed him with a fake one.  Taxi drivers are known to do this to foreigners so be especially careful when receiving a 50 from one, so the best thing to do is break your 100s elsewhere!  Other scams include being handed a 100 in change with the amount in your favor.  If you have no choice, and this happens, throw a big fit and threaten to (and if necessary) call the police 110. 

Here's what to look out for to distinguish real cash from fake.  The paper should feel rough due to the ridges formed from the printing process.  (Check Mao's jacket on 100 bills) A completely smooth bill is a sure sign that something is wrong.  In addition, be sure to check for the security foil (Security Foil Article), watermark, and if you have an ultraviolet device, to check for the security printing.  If you suspect anything, you should feel free to ask for another bill.

Inexpensive keychain UV light

Hidden printing on bills visible only with UV light

 

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