How To Open A Yuan Bank Account

Opening A Yuan Bank Account

First Published Date : February 16, 2011 ADawnJournal.com

Recently, China moved a step forward in terms of economic integration with the rest of the world when it allowed, for the first time ever, accounts in the United States to be opened under their currency; the Yuan. This is a big step for China, which will soon become the largest and most powerful economy on the planet and many see it as a sign China is opening up to the rest of the world.

So, if you are thinking of opening an account in the Yuan, what do you need to do to make it happen? Well, first of all, if you live in the American Midwest, you are out of luck because you are as about as far as you can get away from where you can open up a Yuan bank account, unless of course you live in Alaska or Hawaii.

No, there are only two places in American where you can open an account in the Yuan, and those are New York and Los Angeles, which happen to be on opposites ends of the country from each other.

This is a huge step forward for China because for years the country kept a tight grip on its exchange rate through its restrictions on the number of Yuan bills that could be brought into, and taken out of, the country. China didn’t want a lot of bank accounts being used in the Yuan because if a large group of people take out accounts in Yuan, it pushes up the exchange rate of the currency since there is an increased demand for it. If that happens, then China can no longer offer cheap goods and services to the rest of the world, which would affect its economy in a monumentally horrible way.

As for why you would open an account in the Yuan, the two biggest reasons are because it diversifies your currency portfolio and if the value of the Yuan increases, you benefit.

Now, how do you open a Yuan currency account? Here are a few easy steps.

1. First, go to New York or Los Angeles to a Bank of China office.

2. Next, you will need $500 at least to open up a U.S. dollars to Renminbi (RMB) account.

3. In order to open a RMB account, make sure you have two forms of identification, a W-9 form and a signature card.

4. You will need to fill out an application on a saving account because you cannot open a checking account that is RMB. This means you can put money into the account, but you cannot take money out, as of yet that is.

That is all there is to opening an account that is in the Yuan. In the future, as China becomes more powerful, you will begin to make a lot of money off your decision to use the Yuan in the account instead of the dollar, which itself is becoming weaker as time goes on and we move into the 21st century.

NB – In Canada, Bank of China is not offering a Yuan currency account yet.