Why do currency exchange offices have an exchange limit? Released

The main reasons for imposing exchange limits are maintaining the stability of the foreign exchange market and preventing illegal money laundering.

1. Foreign Exchange Market Stability: Rapid large-scale foreign currency transactions can increase exchange rate volatility and cause instability in the foreign exchange market. Small exchange limits contribute to managing these risks.

2. Prevention of Illegal Money Laundering and Terrorist Financing: Financial authorities strictly monitor the circulation of illegal funds through currency exchange transactions. For exchanges exceeding a certain amount, identity verification and record keeping are mandated to ensure transparency, and a system is operated to detect suspicious transactions.

In the case of general banks, exchange limits are much more flexible than at exchange offices. Because banks manage a wider range of financial information and have a high degree of customer trust, they generally do not impose significant separate restrictions on large-scale exchanges for legitimate purposes such as individuals' overseas travel expenses or study abroad costs.

However, for high-value exchanges, additional procedures such as verification of fund sources may be required, and the submission of relevant documents may also be requested.

Currency exchange offices offer better accessibility than banks and specialize in small-amount exchanges, but regulations are stricter, so it is advisable to always check the relevant regulations before use and consult a professional institution if necessary.