PBOC and SAMR Clarify Boundaries for RMB Trading

The People's Bank of China (PBOC) and the State Administration for Market Regulation (SAMR) announced on August 21 that, except under specific circumstances, no entities or individuals are permitted to buy or sell the renminbi (RMB). The two agencies stated that the measure aims to combat illegal RMB trading activities, safeguard the currency's credibility, protect consumer rights and interests, and promote the healthy development of currency-related cultural activities. The announcement will take effect on September 1, 2026.

According to the announcement, currently circulating RMB shall not be traded. Industry experts noted that illegally trading circulating RMB blurs the boundary between "circulating currency" and ordinary commodities such as collectibles. Practices such as hoarding and speculating on identical serial numbers, consecutive serial numbers, or specific editions of RMB disrupt normal currency circulation, damage the RMB's reputation and the seriousness of its status as legal tender, and must be strictly prohibited.

RMB that has been officially declared withdrawn from circulation by the PBOC may be traded starting from the date of withdrawal. Industry experts believe this is primarily because withdrawn RMB no longer functions as circulating currency, and its face value no longer represents monetary value. Its significance as historical artifacts and collectibles becomes more prominent, allowing it to be collected, exchanged at bank branches, or traded on the market.

The announcement clarifies that commemorative coins may be traded. Commemorative coins include ordinary commemorative coins and precious metal commemorative coins. Ordinary commemorative coins consist of commemorative coins and commemorative banknotes. However, ordinary commemorative coins shall not be traded in any manner before public distribution.

"Commemorative coins are legal tender issued by the PBOC in limited quantities with specific themes, primarily to meet public collecting needs and generally not intended for circulation. Therefore, they may enter the market for trading," industry experts explained.

Industry experts believe that the requirement stating "ordinary commemorative coins shall not be traded in any manner before public distribution" can curb pre-sale speculation, hoarding, and artificial price inflation by market entities before ordinary commemorative coins are issued.

For some time, unlawful merchants have exploited public enthusiasm for currency collecting and information asymmetry, using tempting and misleading language to falsely advertise currency products as "value-preserving and appreciating." Some deliberately blur the distinction between commemorative medals (vouchers) and RMB commemorative coins (banknotes), misleading the public into purchasing souvenirs with no monetary collectible value. Some even use currency collecting as a cover for illegal activities.

"The requirements in this announcement focus on combating speculative hype and false advertising in违规sales. They do not restrict the public's normal collecting needs," industry experts stated.

The announcement clearly prohibits false advertising, exaggerating returns, guaranteeing future returns, or explicitly or implicitly promising risk-free returns. It also prohibits using RMB trading for money laundering or illegal fundraising activities. Furthermore, when producing commemorative medals, commemorative vouchers, commemorative gold, and other craft items, manufacturers shall not use the PBOC's name or currency units, nor mislead consumers into believing such products are RMB or that the seller is the PBOC.

Industry experts anticipate that after the announcement takes effect, the public's legitimate and normal currency collecting activities will be better protected, speculative behavior will be curbed, and illegal activities will be punished according to law.