Instead of currency control, China's foreign exchange regulator is closing some of the loopholes in law enforcement and responding to capital flight.

The State Administration of Foreign Exchange in its notice on Sunday requires that people applying to exchange the yuan to another currency declare the intended use. The administration, against some predictions, has left the annual $50,000 quota of foreign currency that can be purchased per person unchanged.

Customers must now give a written pledge that the money will not be used for overseas purchases of property, securities, life insurance or any other insurance of an investment nature.