China’s central bank to raise remittance limits from Macau

The Chinese central bank authority, People’s Bank of China, announced on Wednesday that it would raise the daily limit on individuals’ remittance from Macau to Chinese yuan accounts in the mainland to RMB80,000, Reuters reported.
The measure, which does not have a date for commencement yet, was announced to facilitate trading between the Macau and mainland markets, the Chinese banking regulator said in a statement.
The current limit for such money transfers is currently RMB50,000, meaning that the new ceiling represents a rise of 60% in the amount allowed to be transferred in a single day.
Questioned on the possible reasons for such measures, as well as the consequences, local economist Albano Martins has said that the measure is consistent with the idea of Macau’s broader and further integration with China, as well as increasing internal investment.
“I don’t know exactly the purpose of this measure, but apparently it is consistent with a higher integration [of Macau] in China and with an increase of investment in the mainland,” Martins said. “It will certainly change, but the extent [of this change] will depend on the size of the current business or business prospects.”
Although the measure is aimed at people and not companies, the economist remarked that he does not think that the measure will significantly influence the integration of local families in the mainland, namely in the Greater Bay Area, but instead, “would gradually increase the influx of money [from Macau to the mainland] depending on the business perspectives of these people or [will] be used to support family members in their process of integration or work in the mainland.”
For Martins, “China is extraordinarily overprotected, and highly bureaucratic, and needs to accelerate its opening if wants to cope with the current [worldwide] trends and directions.”
The announcement of the new measure came the day Chinese President Xi Jinping arrived for a three-day visit to Macau to celebrate the 20th anniversary of the handover of Macau and swear in the new Chief Executive, Ho Iat Seng. The fifth term of the Macau SAR government officially starts from today.