The amount of foreign currency bought by Chinese residents with Renminbi (RMB) has soared by over 50 percent since China adopted a new policy on individual foreign exchange last October.

From October 2003 to February 2004, Chinese residents bought foreign currencies worth US$475.41 million for private use, up 51.2 percent year on year, according to latest figures from the State Administration of Foreign Exchange.

If mainland residents use foreign currency credit cards to purchase abroad, they are allowed to buy the same amount of foreign currency with RMB after they return, according to the new policy.

"This stimulates Chinese tourists' consumption in other countries," said an official with the State Administration of Foreign Exchange.

Figures show the amount of foreign currency bought by Chinese residents for overseas sightseeing jumped 164.1 percent during the October-February period and the volume for overseas study surged 58.3 percent during the period.

The new policy also allows mainland residents to buy more foreign currency for tourism in Hong Kong and Macao, which led to the tripling of foreign currency bought by mainland tourists for visits to the two regions during the October-February period, according to the administration.

(Xinhua News Agency March 31, 2004)