Chinese banks lower daily limit of USD withdrawals to $3,000

Chinese banks have lowered the amount of US dollars people can withdraw daily from $5,000 to $3,000, South China Morning Post reports. The increased scrutiny may be linked to the US-China trade war.

Before last year’s changes, people could make daily withdrawals of $5,000 without presenting a required proof of need, such as a plane ticket for overseas travel. Although people are legally allowed to withdraw up to $50,000 a year, banks have been instructed to compile watchlists of customers who make withdrawals often. According to scmp, the instructions come from China’s central bank People’s Bank of China.

“The reason banks are so nervous is that China wants to closely monitor capital outflow against the backdrop of a prolonged trade war,” said Iris Pang, ING’s Greater China economist.