What is the meaning of foreign exchange

Foreign exchange is the monetary administration (central bank, monetary authority, foreign exchange equalization fund and ministry of finance) in the form of bank deposits, treasury bills, long and short-term government securities and other forms of retained in the balance of payments deficit can be used in the claim.

Including foreign currencies, foreign currency deposits, foreign currency securities (government bonds, treasury bills, corporate bonds, stocks, etc.), and foreign currency payment certificates (bills, bank deposit certificates, postal savings certificates, etc.).

As of 2015, China ranked first in the world in terms of government foreign exchange reserves. However, the United States, Japan, Germany and other countries have large amounts of private foreign exchange reserves, and the country's overall foreign exchange reserves are much higher than those of China.

Expanded:

Chinese classification

In accordance with the control:

①Current exchange, China's "Provisional Regulations on Foreign Exchange Management" referred to as the four types of foreign exchange are current exchange, is immediately available as a means of payment of international settlements;

②Purchase of foreign exchange, the state-approved foreign exchange indicators that can be used.

This is the first time that you want to exchange foreign currency for foreign currency. If you want to change the indicator into foreign currency, you must be in accordance with the State Administration of Foreign Exchange published exchange rate quotes, with the RMB in the indicator limit to the designated bank to buy foreign currency, the professional term is called the purchase of foreign exchange, must be used in accordance with the specified purpose of the function of purchasing foreign exchange.

In accordance with the nature:

①Trade foreign exchange, from exports and imports to pay the purchase price as well as import and export trade-related ancillary costs, such as freight, insurance, samples, publicity, promotional costs, etc. used in foreign exchange;

②Non-trade foreign exchange, import and export trade other than foreign exchange, such as remittances, tourism, ports, civil aviation, insurance, banking, foreign exchange income and expenditure on contracted projects. Contracted projects and other foreign exchange income and expenditure.

References:

Baidu Encyclopedia - Foreign Exchange