People entering or leaving China will be allowed to carry foreign currency in cash equal to US$5,000 after a new regulation comes into effect on Sept. 1.

The sum is much higher than the current level of 2,000 dollars, in accordance with a regulation jointly issued by the State Administration of Foreign Exchange (SAFE) and the General Administration of Customs.

A spokesman for the SAFE said the move was aimed at catering to the new situation in China's further reform and opening-up, facilitating business and helping combat illegal activities such as money laundering and currency smuggling.

The rule stipulates that people who enter China must declare any foreign currency in cash exceeding the equivalent of US$5,000.

Those who want to carry more than US$5,000 abroad need special permission from local banks or foreign exchange administrations.

(Xinhua News Agency August 30, 2003)