It is the price difference between electronic settlement currency and physical cash currency when banks buy and sell them.

The converted quotation price of Bank of China is the middle price used internally by Bank of China. It is mainly used for conversion between currencies in internal accounting, and is also used for internal closing of positions after foreign exchange purchases to calculate the profit and loss of the business.

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 deposit account of domestic residents Foreign currency cash deposit accounts held by individuals. Foreign exchange bills remitted from abroad or brought in by resident individuals can be understood as "spot exchange", and they can open a spot exchange account for storage;

Of course what you keep in the bank should be cash. If someone remits money to your account from abroad, it is a cash remittance. In addition, if you handle the exchange of Japanese yen = US dollar at the Bank of China, you can pay it in If your Bank of China passbook shows Type C foreign exchange spot, the bank purchase price of these two types of foreign exchange will be higher than the cash price, and the selling price of this kind of spot exchange will be lower than the cash price.

First of all, the buying price refers to the exchange rate used by foreign exchange banks when buying foreign exchange, and the selling price is the exchange rate used by foreign exchange banks when selling foreign exchange. The foreign exchange at this time refers to the foreign exchange deposited in foreign banks, such as US dollars. Therefore, the buying price and selling price on the foreign exchange quotation are the spot exchange rate.

Secondly, the cash price is the price used by foreign exchange banks when selling cash. At this time, cash refers to foreign exchange cash ( banknotes) rather than foreign bank deposits.

Again, since spot exchange and cash are two different concepts, when a bank buys spot exchange, it can directly transfer the purchased foreign exchange to its foreign country. In the bank account, there is no interest loss, but when buying foreign currency cash, it needs to be kept in the bank's inventory for a period of time, so that enough foreign currency cash (such as 1 million U.S. dollars) can be deposited in other banks to obtain interest. When a bank buys foreign currency cash, it will incur interest losses compared to buying spot exchange. This 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 than the buying price of spot exchange. This is The law will never change, just as the deposit interest rate will always be lower than the loan interest rate. Finally, the selling price of cash and the selling price of spot exchange are consistent, because in this case, there is no need for banks. Interest loss, right? Therefore, the bank separately indicates the buying price of cash, but there is no selling price of cash.

So, if the US dollar assets in your hand are not paid in foreign bank deposits or foreign currency certificates ( (such as money orders, cashier's checks, wire transfer vouchers, etc.), you should use the cash purchase price, and you will lose a little.

If you sell the cash to the bank, you are selling your foreign exchange in the foreign bank. The deposit is sold to the bank. From the moment you sell it to the bank, the foreign exchange deposit is transferred from your name to the bank's name. The bank can immediately get the money in the foreign bank as long as it handles the accounting accordingly. Foreign currency deposits, and the interest can be calculated immediately.

If the bank buys cash, since the foreign currency cash cannot be circulated and used in the place of transaction, the cash needs to be shipped abroad, so not only can it not be immediately Obtain deposits and interest, and have to pay fees to keep the cash. Until a sufficient amount of cash is accumulated, the bank can transport the foreign currency cash abroad and deposit it in a foreign bank. Until then, the bank can obtain the foreign currency banknote. Deposit in Forex and start earning interest. The specific fees that banks need to pay when collecting 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.