How to Make USD to RMB Exchange More Cost-Effective

There are many different ways to exchange currencies, and in the process of cross-border transactions, choosing the right currency exchange method is very important and can help you save unnecessary expenses. There are many ways to exchange currencies. In the previous article,  we have introduced the currency exchange methods from a macro perspective. In this article we will focus on usd to rmb, more targeted introduction.

Ⅰ. Bank exchange

Bank of China provides foreign currency exchange services, and many large branches have special foreign currency exchange windows. The exchange rate is usually reasonable, but you may need to make an appointment in advance, especially when exchanging large amounts. Other banks, such as Industrial and Commercial Bank of China, Construction Bank of China, Agricultural Bank of China, etc., also provide US dollar exchange services, but their network coverage is not as extensive as that of Bank of China.

Local U.S. banks that offer RMB exchange are relatively limited. Chinese American Bank is one of the few banks in the U.S. that offers foreign exchange services for RMB. It supports more than 60 currencies exchange, and the exchange rate of RMB is more favorable. Customers can visit a branch of East West Bank to exchange RMB cash directly. It also offers foreign currency repurchase service, which means customers can exchange their remaining RMB back to USD.

Bank of America and JPMorgan Chase support international remittance services, but the remittance is mainly in US dollars, and RMB exchange needs to be done through domestic Chinese banks. This process will incur international wire transfer fees.

II. Online Remittance Service Platform

Cross-border remittance services are a common way to convert USD into RMB and send it back to China, and these services usually offer better exchange rates and lower fees. Recommended cross-border remittance platforms are listed below:

1. XTransfer

Focusing on cross-border financial services for foreign trade enterprises, XTransfer offers free opening of all receiving accounts without charging account management fees or crediting fees, thus effectively reducing the initial operating costs of enterprises. The platform supports the collection and exchange of 14 mainstream currencies, providing foreign trade enterprises with global transaction convenience. The handling fee for withdrawing cash from foreign exchange is 0.4% of the amount withdrawn, and with the increase of the amount of foreign exchange settlement, the rate can be reduced to as low as 0.1%. The handling fee for ordinary withdrawals or transfers to mainland China or Hong Kong is generally US$10, while it is US$20 for other regions. In addition, through XTransfer's local receiving account, funds can be deposited in as little as 1 business day, enhancing the efficiency of funds utilization. xTransfer is also regulated by the relevant financial regulators to ensure the safety and compliance of funds flow.

2. Wise

Wise uses the mid-market exchange rate with no hidden fees and transparent handling charges. USD/CNY remittance fees are low, making it suitable for small and medium-sized exchanges36.

3. Remitly

For ordinary remittances (e.g. under $3,000), Remitly is usually a good choice. It supports USD to RMB conversion, and recipients can receive money via Alipay, WeChat Wallet, or UnionPay card.Remitly has a more favorable exchange rate and lower fees, making it suitable for small remittances.

4. LemFi 

LemFi is a new cross-border remittance service that offers fee-free remittance services and favorable exchange rates. Users can pay by debit card with a maximum limit of 5,000 USD per day, which is suitable for small amount remittance.

III. P2P Swapsy Service

Swapsy is a peer-to-peer (P2P) currency exchange platform designed for exchanging currencies such as Renminbi (RMB) and United States Dollar (USD) between China and other countries. If you need a fast currency exchange service, you can choose this exchange method. Most transactions are completed within 24 hours and users don't need to worry about funds lingering on the platform.Swapsy allows users to exchange currencies directly without going through a bank. Users can conduct transactions through registered e-wallets such as PayPal, Zelle, Alipay and WeChat Pay. However, users must be familiar with both Chinese and American e-payment methods and have a valid e-wallet from both countries in order to use this method.

Ⅳ. Conclusion

When making a USD to RMB exchange, choosing the right exchange method is crucial to help users save money and increase efficiency. Banks usually offer reasonable exchange rates, especially large banks such as the Bank of China, but large amounts may need to be booked in advance. For cross-border remittances, online platforms like XTransfer, Wise, Remitly and LemFi offer lower fees and favorable exchange rates for users with different needs, especially foreign trade enterprises and small remittances, while P2P exchange platforms such as Swapsy offer direct currency exchange without going through a bank for users who need to exchange quickly. Each method has its advantages, and choosing the most suitable method for you can reduce the exchange cost more effectively.