China's State Administration of Foreign Exchange announced on Friday (March 19) that it would draw up further rules on the management of travelers' cheques.

The move is aimed at improving supervision on the country's forex circulation.

Travelers¡¯ cheques, which have a fixed face value and are exchangeable for currency, are issued by overseas banks and sold by local agents.

They can be sold to domestic institutions, overseas institutions based in China, or individuals on the Chinese mainland. They can only be used for non-business activities, such as overseas travel, medical care and education.

Institutional buyers can purchase the cheques through either forex or Renminbi accounts, but cannot purchase by currency, while individuals are not bound by any such restrictions.