What is the difference between cash and cash?

Cash

Cash

Cash is specific and real foreign banknotes, coin. When customers want to transfer cash out of the country, they can do so by carrying it or remitting it. However, when the customer "remits", since the cash is in physical form, the bank must transport it abroad, and the transportation costs will be borne by the customer, which is manifested as "selling cash and buying foreign currency" (the customer sells cash and buys foreign currency). cash). It can be seen that cash cannot be converted into an equal amount of spot exchange. If the cash is to be converted into spot exchange, the customer will suffer a certain loss in the amount of foreign exchange.

Spot foreign exchange is the foreign exchange on the books. When it is transferred out of the country, there is no physical transfer, it can be remitted directly, it is just a transfer on the account. When withdrawing cash in cash, since the remitting party has already borne the transportation fee, the same amount of cash can be withdrawn in cash.

In the foreign exchange price announced by the designated foreign exchange bank, the buying price of cash is less than the buying price of spot exchange, while the selling price of cash and spot is equal. This shows that the country's foreign exchange management policy is to encourage the holding of spot exchange and restrict the holding of cash, because spot exchange, as a fund on the books, is more convenient for foreign exchange management than cash.

Spot foreign exchange

Spot foreign exchange means that it can be bought and sold freely in the international financial market, also known as "free foreign exchange". Foreign exchange that is widely used in international settlements, is reimbursed internationally and can be freely exchanged for the currencies of other countries. The countries that issue these currencies have relatively loose control over foreign exchange. Some have even basically abolished foreign exchange controls. Others have implemented strict foreign exchange controls. Their own currencies cannot be freely converted into internationally accepted foreign currencies, and they stipulate that their own currencies cannot be brought in or out of the country. territory.

Simply put, spot exchange refers to foreign currency bills remitted from abroad or brought in from abroad, which are deposited into an individual's bank account in the form of transfer.

Exchange rate is also called "foreign exchange market or exchange rate". The exchange rate of one country's currency for another country's currency is the price of one currency expressed in another currency. Since the currencies of various countries in the world have different names and different currency values, one country's currency must set an exchange rate for the currencies of other countries, that is, the exchange rate.

Exchange rate is the most important adjustment lever in international trade. Because the cost of goods produced in a country is calculated in its own currency, if it wants to compete in the international market, the cost of its goods must be related to the exchange rate. The level of the exchange rate will directly affect the cost and price of the commodity in the international market, and directly affect the international competitiveness of the commodity.

For example, for a product worth 100 yuan, if the exchange rate between the US dollar and the RMB is 8.25, the price of this product in the international market is US$12.12. If the U.S. dollar exchange rate rises to 8.50, that is to say, the U.S. dollar appreciates and the RMB depreciates, the cost of the product in the domestic market is actually lower, which directly makes its price in the international market lower. The price of the commodity will be lowered and the competitiveness will become stronger, which will definitely make it easier to sell, thereby promoting the export of the commodity. On the contrary, if the U.S. dollar exchange rate falls to 8.00, that is to say, the U.S. dollar depreciates and the RMB appreciates, it will definitely be beneficial to U.S. exports of goods. Similarly, an appreciation of the U.S. dollar and a depreciation of the RMB will be beneficial to the export of Chinese goods to the United States. Conversely, a depreciation of the U.S. dollar and an appreciation of the RMB will greatly affect U.S. exports to China.

An important consideration for Japan and the United States in requiring RMB appreciation is that RMB appreciation will significantly increase the cost of China’s exports in the international market, affecting the competitiveness of Chinese products, and in turn* **China imports their goods in large quantities. During the Asian financial crisis, if the RMB depreciated, the financial crisis in other countries would be even worse.

It is precisely because exchange rate fluctuations can bring such wide range fluctuations to import and export trade that many countries and regions implement relatively stable currency exchange rates. Mainland China's import and export volume has grown rapidly and steadily, largely due to the stable RMB exchange rate policy.

Foreign Currency Exchange Foreign Currency Exchange

1. Product introduction:

Foreign currency is commonly referred to as foreign currency. Foreign currency exchange is an over-the-counter service provided to individual customers, including buying foreign currency, selling foreign currency and converting one foreign currency into another.

2. Product service functions:

Provide individual customers with services to convert foreign exchange into RMB or other foreign currencies.

3. Service objects:

Overseas individual customers.

Currently, the currencies that banks can exchange are: US dollars, Euros, Hong Kong dollars, and Japanese yen.

1) Procedures for buying foreign currency:

(1) The freely convertible currencies held by Hong Kong, Macao, Taiwan, overseas Chinese, and foreigners need to be converted into RMB, and they can do so with their valid identity Please go to our bank's business department to exchange your certificate;

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What is the difference between cash and cash?

"Cash account" refers to the transfer deposit account of foreign exchange remitted or brought in from Hong Kong, Macao, Taiwan or abroad; "Cash account" refers to the foreign currency cash held by domestic residents. Deposit account. The foreign exchange remitted by residents from abroad or the foreign exchange bills brought in can be understood as "spot exchange", and they can open a spot exchange account for storage; of course, what you deposit in the bank should be cash from abroad. When you remit money to your account, it is a cash remittance. In addition, if you handle the exchange of Japanese yen = US dollar at the Bank of China, it will be printed on your Bank of China passbook, and it will show type C foreign exchange spot. And these two foreign exchange banks The purchase price will be higher than the cash price, and the selling price of this spot currency will be lower than the cash price. First of all, the buying price refers to the exchange rate used by the foreign exchange bank to buy foreign exchange, and the selling price is the exchange rate the foreign exchange bank sells. The exchange rate used when exporting foreign exchange. The foreign exchange at this time refers to the foreign exchange deposited in foreign banks, such as U.S. dollars. Therefore, the buying price and selling price on the foreign exchange quotation are the spot exchange rate. Secondly, the cash price is the foreign exchange bank's selling price. At this time, cash refers to foreign exchange cash (banknotes), not foreign bank deposits. Thirdly, since spot exchange and cash are two different concepts, when the bank buys spot exchange, it can directly transfer it. The purchased foreign exchange is transferred to its foreign bank account without any interest loss. When buying foreign currency cash, it needs to be kept in the bank's inventory for a period of time to collect enough foreign currency cash (such as 1 million U.S. dollars). Deposit in other banks to obtain interest, so the bank will incur interest losses when buying foreign currency cash compared to buying spot currency. This part of the loss will of course be borne by the party selling the foreign currency cash. Therefore, in the bank's quotation, the buying price of cash must be lower. As for the spot exchange buying price, this rule will never change, just as the deposit interest rate will always be lower than the loan interest rate. Finally, the cash selling price and the spot foreign exchange selling price are consistent, because in this case, for the bank, There is no interest loss, right? Therefore, the bank separately indicates the buying price of cash, but there is no selling price of cash. Therefore, if the U.S. dollar assets in your hand are not in foreign bank deposits or foreign currency payment certificates (such as bills of exchange, cashier's checks, etc.) If there is a wire transfer certificate, etc.), you should use the cash purchase price and suffer a small loss. If you sell the cash to the bank, you are selling the foreign exchange deposit to the bank. The moment it is transferred from your name to the bank's name, the bank can immediately obtain the foreign exchange deposit in the foreign bank and start calculating interest as long as it does the corresponding accounting processing. What is deposited is cash. Since foreign currency cash cannot be circulated and used in the local area of ????the transaction, the cash needs to be transported abroad. Therefore, it not only cannot obtain deposits and interest immediately, but also has to pay fees to keep the cash until enough cash is accumulated. Only then can the bank transport these foreign currency cash to foreign banks and deposit them in foreign banks. The specific fees that banks need to pay for receiving foreign currency cash include: Cash management fees, transportation fees, insurance fees, packaging fees, etc. These fees are reflected in the difference between the cash purchase price and the spot exchange purchase price. Reference: zhidao.baidu/question/2932787

What are the differences and their respective uses of spot exchange and cash?

First of all, cash and spot exchange are two types of foreign exchange assets held by Chinese residents. different forms. By definition, spot exchange refers to foreign exchange deposits remitted from foreign banks to China, as well as international settlement certificates such as foreign currency bills, cashier's checks, and traveler's checks that banks can directly deposit into their accounts through electronic transactions. Cash refers to the foreign exchange banknotes held by domestic residents. To put it more clearly (all understood according to the concept of RMB), spot exchange is equivalent to the bank card you receive from the bank (ICBC’s Peony Card, Bank of China’s Great Wall Card), cash is equivalent to the RMB on hand, and spot exchange is equivalent to the amount on the account. of foreign currency, and cash is the foreign currency you have on hand.

The biggest difference for us is that which one is more valuable, because foreign currency cannot be circulated in China and must be circulated in the world. Therefore, in terms of circulation, your spot exchange can be directly settled electronically, so the liquidity of spot exchange is higher than that of cash. Banknotes are good. This determines that the price when banks buy spot foreign exchange is a little more expensive than cash. In addition, it takes a certain period of time after banks receive foreign currency cash, and only after they accumulate to a certain amount can they be transported and deposited into foreign banks for allocation. Prior to this, banks that bought foreign banknotes had to bear certain interest losses; in the process of transporting and depositing the cash into foreign banks, there were also expenses such as freight and insurance premiums. The bank had to pass these losses and expenses to the seller of cash. Customers of banknotes, so the price that banks pay for buying cash is lower than the price for buying spot foreign exchange. Purpose, if they are in China, I think they are all used for international settlement. There is no difference in the settlement process except the price. If you go abroad, your settlement is no longer an inter-bank settlement. I think cash and cash are different. If you bring cash, you can use it directly in the foreign market, but if you bring cash, you must go to your The bank to which the cash transfer is sent must convert the cash transfer into cash before it can be used locally. Another point is: if you want to transfer your foreign exchange from one bank to another in China, you have to transfer the cash through the bank and pay a certain handling fee. If it is cash, you only need to withdraw the deposit from one bank. Just transfer to another bank without any fees. To sum up, it is better for you if you only make cash in China, because the selling price is high, but it will be more convenient if you go to other parts of the world to pay cash, and it is also more convenient to circulate cash in the country.

What do spot exchange and cash mean?

Cash refers to hand-held foreign currency cash, and spot exchange refers to the inflow of foreign currency through TT (telegraphic transfer). The price of spot exchange exchange is higher than the cash exchange price, because after the bank receives the foreign currency cash, There is also a cost to transport the money abroad, which is why the cash price is relatively low.

What is the difference between spot exchange and cash.

Cash and spot exchange are two different forms of foreign exchange assets held by Chinese residents. Theoretically, spot exchange refers to foreign exchange deposits remitted from foreign banks to the country, as well as international settlement certificates such as foreign currency bills, cashier's checks, and traveler's checks that banks can directly deposit into their accounts through electronic transactions. Cash refers to the foreign exchange banknotes held by domestic residents. Since foreign currency cannot be circulated in China and must be circulated in the world, in terms of circulation, your spot exchange can be directly settled electronically, so the liquidity of spot exchange is better than cash. This determines the price at which banks buy spot exchange. A bit more expensive than cash. In addition, it takes a certain period of time after banks receive foreign currency cash, and only after it accumulates to a certain amount can it be transported and deposited in foreign banks for allocation. Prior to this, banks that bought foreign banknotes had to bear certain interest losses; in the process of transporting and depositing the cash into foreign banks, there were also expenses such as freight and insurance premiums. The bank had to pass these losses and expenses to the seller of cash. Customers of banknotes, so the price that banks pay for buying cash is lower than the price for buying spot foreign exchange. Through the above analysis, we can see that when making international settlements, cash exchange is more convenient, but if you go abroad, your settlement is no longer an inter-bank settlement. Cash is more convenient than cash because cash can be directly sold in foreign markets. If you bring cash, you must go to the bank where you go to exchange the cash into cash before you can use it locally.

In addition, if you want to transfer your foreign exchange from one bank to another in China, you have to transfer cash through the bank and pay a certain handling fee. If it is cash, you only need You can withdraw money from one bank and deposit it into another bank without any fees. But in terms of deposit interest, spot exchange is higher.

What is the difference between cash and foreign exchange?

First of all, the first question:

Simply put, spot exchange refers to foreign currency bills remitted from abroad or brought in from abroad, which are deposited into an individual’s bank account in the form of transfer. in the account.

Cash refers to foreign currency cash or foreign currency cash deposited in banks.

The difference between spot exchange and cash

1. Spot exchange expressed in foreign currency can be used as a means of payment for international settlements. Cash refers to foreign currency, including banknotes and coins.

2. Income and expenses of the account: The income of the current exchange account is various remittances or transfers in cash, and the income of cash is generally the returned foreign currency cash; if the unit pays foreign currency cash into the unit's current account, It needs to go through the calculation of the cash exchange rate; similarly, if the unit withdraws cash from its current account, it needs to go through the calculation of the cash exchange rate.

3. Interest calculation: Under normal circumstances, the current account is calculated according to the prescribed interest rate, and the unit cash account does not calculate interest.

It seems that the Swiss currency converted from the bank according to the exchange rate is cash

The second issue about handling fees:

Handling fees vary from bank to bank. , different remittance methods will be different, please consult the remittance bank for specific standards!

The handling fee is based on ICBC as an example. Handling fee: The remittance amount is converted into RMB according to the quoted price on the day, with a minimum of RMB 20 and a maximum of RMB 200. If you are studying abroad and remitting, you will enjoy some discounts. Postage and telecommunications fees; Hong Kong and Macao 80 yuan in Taiwan and 150 yuan in other countries

In addition, when you remit money, according to the national foreign exchange management regulations, the maximum remittance amount shall not exceed the equivalent of 10,000 yuan in US dollars

Fill in the overseas remittance application When writing the book, the A/C number means: Account number

The third issue regarding outbound funds:

You can only bring outbound funds less than 5,000 US dollars or less than 20,000 RMB. If there is more, it will go through customs. need to declare when.

What is the difference between cash and spot exchange?

First question:

Simply put, spot exchange refers to remittance from abroad or bringing in from abroad. The foreign currency bills are deposited into the individual's bank account through transfer.

Cash refers to foreign currency cash or foreign currency cash deposited in banks.

The difference between spot exchange and cash

1. Spot exchange expressed in foreign currency can be used as a means of payment for international settlements. Cash refers to foreign currency, including banknotes and coins. 2. Income and expenses of the account: The income of the current exchange account is various remittances or transfers in cash, and the income of cash is generally the returned foreign currency cash; if the unit pays foreign currency cash into the unit's current account, It needs to go through the calculation of cash discount and exchange rate; similarly, if the unit withdraws cash from its current exchange account, it needs to go through the calculation of cash exchange rate discount.

3. Interest calculation: Under normal circumstances, the current account is calculated according to the prescribed interest rate, and the unit cash account does not calculate interest.

It seems that the Swiss currency converted from the bank according to the exchange rate is cash

The second issue about handling fees:

Handling fees vary from bank to bank. , different remittance methods will be different, please consult the remittance bank for specific standards!

The handling fee is based on ICBC as an example. Handling fee: The remittance amount is converted into RMB according to the quoted price on the day, with a minimum of RMB 20 and a maximum of RMB 200. If you are studying abroad and remitting, you will enjoy some discounts.

Postage and telecommunications charges: 80 yuan for Hong Kong, Macao and Taiwan, 150 yuan for other countries

In addition, when you remit money, according to the national foreign exchange management regulations, the maximum remittance amount shall not exceed the equivalent of 10,000 yuan in US dollars

< p> When filling in the overseas remittance application form, the A/C number means: account number

The third issue regarding outbound funds:

You can only bring outbound funds below 5,000 US dollars or 20,000 RMB. If there are more than the following, you need to declare them when going through customs.

What is the difference between cash exchange rate and spot exchange rate?

The buying price of cash refers to using foreign currency cash to go to the bank to exchange for RMB

The buying price of spot currency refers to using the spot currency remitted from abroad to directly exchange for RMB

The exchange rate for buying spot currency is higher than the buying price for cash

ICBC spot foreign exchange quotation:

icbc/other/quotation.jsp

When buying US dollars, cash or spot exchange

Of course, buy spot exchange and use the spot exchange selling price, because the price of cash and spot exchange is the same when buying foreign exchange, but there is a difference when settling foreign exchange. Cash is cheaper and spot exchange is more expensive. , that is to say, the RMB exchanged for cash is less than the RMB exchanged for spot exchange.

However, one thing is that the spot exchange buying price is used when settling foreign exchange. This price is originally lower than the spot exchange selling price because the bank's foreign exchange business itself is a bit poor, and it also depends on the relationship between the RMB and the US dollar at the time of settlement. The exchange rate fluctuates. If the RMB continues to appreciate, no matter which price is used to settle the principal, it will be a loss. If the RMB depreciates, it is more cost-effective to settle the exchange in spot exchange (I personally think that the probability of RMB depreciation is very small, and it should not be possible for a long time in the future. appear). Therefore, you must consider carefully when purchasing and settling foreign exchange.

The difference between cash and spot exchange in foreign exchange transactions

Foreign exchange trading refers to electronic trading; there is no spot exchange/cash currency;

The spot exchange you asked about/ Cash only exists when you buy and sell foreign exchange·

Difference

Cash: only numbers, which can be used for transfers/cards/electronic payments, etc.·The exchange rate is lower when buying foreign exchange A little bit more expensive than cash;

Cash: It is banknotes, which can be taken out. When purchasing foreign exchange, the exchange rate is higher/expensive than cash currency;

After all, not every bank has cash in stock. There are so many and the quantity is small, so it will be expensive if you want it;