? At present, foreign exchange control is a hot foreign exchange category, which also has a great impact on foreign exchange performance. But? The following author reveals the secret for you. Foreign exchange control: refers to any form of intervention in foreign exchange holding, foreign trade or capital flow by * * or the central bank to avoid excessive expansion of domestic money supply or depletion of foreign exchange reserves. Purpose of foreign exchange control: 1. Promote or improve the balance of payments. 2. Stabilize the local currency exchange rate and reduce the foreign exchange risk in foreign-related economic activities. 3. Prevent capital flight or large-scale speculative capital flow and maintain the stability of the domestic financial market. 4. Increase the country's international reserves. 5. Effective use of foreign exchange funds to promote the priority development of key industries. 6. Enhance the international competitiveness of domestic products. 7. Enhance financial security. Do you know now? Actively master every concept and apply it to your own foreign exchange speculation, and you will certainly get good results in the foreign exchange market. Further reading: the "recharge courtesy" preferential activity of multimedia training center has begun. The combination of waves and channels (1) The mystery of the foreign exchange market-Murder skillfully uses the Bollinger Band to speculate on foreign exchange, learn more technical analysis knowledge, and click on Speculation Monthly.
Why should the country implement foreign exchange control?
Foreign exchange control refers to a system in which countries restrict international settlement and foreign exchange transactions in the form of law in order to maintain the exchange rate of their own currencies and balance international payments.
Briefly describe the purpose of a country's foreign exchange control?
Foreign exchange control serves the economy and politics of the country. Due to the differences in political and economic systems and economic development levels among countries, the focus of foreign exchange control is also different. Generally speaking, foreign exchange control mainly achieves the following purposes:
1. Expand domestic commodity production
Restrict the import of foreign commodities through foreign exchange control and promote the export of domestic commodities, so as to expand domestic commodity production. Restricting the import of similar cheap goods that threaten the existence and development of domestic infant industries and encouraging the export of domestic products through foreign exchange control can make domestic infant industries grow rapidly in the domestic market through scale expansion and promote the promotion and development of the national economy.
2. Maintain the balance of payments
Restrict capital flight and foreign exchange speculation through foreign exchange control to stabilize the exchange rate and maintain the balance of payments. Maintaining exchange rate stability is the premise of developing foreign economy, and balancing international payments is one of the economic policy goals that any country has always adhered to. Once the balance of payments deteriorates, the exchange rate of the local currency falls, which leads to capital outflow and aggravates the balance of payments deficit. Using foreign exchange control can limit capital flight and foreign exchange speculation, and achieve the purpose of stabilizing exchange rate and improving international balance of payments.
3. Stabilize domestic prices
Stabilize domestic prices through foreign exchange control and avoid the impact of price changes in the international market on the domestic economy. Foreign exchange control can prevent the import of international inflation. International inflation can be introduced into China through commodity trade, leading to imported inflation. Countries with strong currencies often face the impact of foreign capital. Through foreign exchange control, commodity imports and capital inflows are restricted, and the introduction of international inflation is blocked, thus maintaining the stability of domestic price levels.
4. Enhance the ability to repay foreign debts
Through foreign exchange control, we can increase China's international reserves and improve the ability to repay foreign debts.
What is foreign exchange control risk?
Foreign exchange control refers to restrictive measures taken by a country to balance international payments and maintain its currency exchange rate. It is also called foreign exchange management in China. International trade policies of countries that restrict international settlement and foreign exchange transactions through laws and regulations. Foreign exchange control is divided into quantity control and cost control. The former means that the State Administration of Foreign Exchange directly restricts and allocates the volume of foreign exchange transactions, and achieves the purpose of restricting exports by controlling the total amount of foreign exchange; The latter means that the State Administration of Foreign Exchange implements a multiple exchange rate system for foreign exchange transactions, and uses the differences in foreign exchange transaction costs to adjust the structure of imported goods.
In countries with foreign exchange control, the foreign exchange income management system of import and export trade is one of the main contents of foreign exchange management, including export trade foreign exchange control, import trade foreign exchange control, import foreign exchange tax collection, restricting foreign currency payment, requiring importers to obtain a certain amount of export credit, increasing or decreasing the deposit for opening letters of credit, adopting import quota system, adopting import deposit system, etc. Exchange rate fluctuation is an almost uncontrollable factor when enterprises conduct business or invest in countries with foreign exchange control. There is a simple reason. Whether buying products or services in this country or investing in this country, enterprises must first buy the currency of the country where their trading rivals are located. For example, exporters will exchange their products or services for local currency or US dollars. If the counterparty is a country or region without foreign exchange control, then both parties can exchange their respective currencies through the foreign exchange market. At present, the foreign exchange market is a global electronic network. The United States, Britain and Japan handle more than half of the global trading volume, while Hong Kong, Singapore, Switzerland, Germany, France and Australia handle the rest. In countries and regions with foreign exchange control, import and export must go through designated institutions or obtain licenses first, and foreign exchange must be sold to designated banks or retained in proportion at the official exchange rate within a certain period of time. Due to the lack of currency circulation outside the market mechanism, enterprises simply cannot use the overseas foreign exchange market to exchange foreign exchange immediately, thus reducing the impact of exchange rate fluctuations.
Political-oriented exchange rate risk;
In countries or regions where foreign exchange control is implemented, a fixed official exchange rate is generally adopted. On the surface, the exchange rates of these countries and regions are relatively stable. That was not the case. These countries often face enormous inflationary pressures at home. At the international level, these countries are often accused of manipulating exchange rates and trade imbalances by other countries and regions without foreign exchange controls, and even of dumping or exporting inflation. In order to alleviate these economic and political pressures from home and abroad, they often take various administrative measures to suddenly change the exchange rate and even change the exchange rate mechanism. When enterprises do business or invest in countries with foreign exchange control, the exchange rate risk of political guidance is much higher than that of countries and regions with no foreign exchange control.
exchange rate risk
If the exchange rate is the price of one country's currency relative to that of another country, then the exchange rate risk is the exchange rate fluctuation of one country's currency relative to that of another country. When evaluating exchange rate risk, we must distinguish between spot exchange rate and forward exchange rate. For some reasons, the forward exchange rate is often different from the spot exchange rate, resulting in exchange rate risk. Shapiro (1999) thinks that there are two kinds of foreign exchange risks, namely accounting risk and economic risk. Zhu (2000) classified foreign exchange risks into three categories, namely trading risk, operational risk and conversion risk. Brian Coyle(2000) is similar to this. He divided foreign exchange risks into three categories: transaction risk, economic risk and conversion risk. In fact, we think these three types of risks are completely different in nature. Trading risk is the current or imminent risk, which will immediately affect the company's financial situation, operating risk is the future risk, and conversion risk is the book risk. For areas where foreign exchange control is implemented, even though some enterprises understand that foreign exchange poses a certain degree of risk to themselves, they are often unable to take corresponding hedging measures because of the lack of local supply of foreign exchange financial derivatives. In the annual report issued by China Petroleum (stock number HK). 0857) The RMB exchange rate on March 2, 20061day may cause uncertainty to the company's books, receivables and payables, but the company did not take any measures to hedge with financial derivatives.
Conversion risk
In trade, economy and ......
Why foreign exchange control?
Foreign exchange control serves the economy and politics of the country. Due to the differences in political and economic systems and economic development levels among countries, the focus of foreign exchange control is also different. Generally speaking, foreign exchange control mainly achieves the following purposes:
Foreign exchange control serves the economy and politics of the country. Due to the differences in political and economic systems and economic development levels among countries, the focus of foreign exchange control is also different. Generally speaking, foreign exchange control mainly achieves the following purposes:
1. Expand domestic commodity production
Restrict the import of foreign commodities through foreign exchange control and promote the export of domestic commodities, so as to expand domestic commodity production. Restricting the import of similar cheap goods that threaten the existence and development of domestic infant industries and encouraging the export of domestic products through foreign exchange control can make domestic infant industries grow rapidly in the domestic market through scale expansion and promote the promotion and development of the national economy.
2. Maintain the balance of payments
Limit capital flight and foreign exchange speculation through foreign exchange control (such as Jiasheng's foreign exchange investment transactions) to stabilize the exchange rate and maintain the balance of payments. Maintaining exchange rate stability is the premise of developing foreign economy, and balancing international payments is one of the economic policy goals that any country has always adhered to. Once the balance of payments deteriorates, the exchange rate of the local currency falls, which leads to capital outflow and aggravates the balance of payments deficit. Using foreign exchange control can limit capital flight and foreign exchange speculation, and achieve the purpose of stabilizing exchange rate and improving international balance of payments.
3. Stabilize domestic prices
Stabilize domestic prices through foreign exchange control and avoid the impact of price changes in the international market on the domestic economy. Foreign exchange control can prevent the import of international inflation. International inflation can be introduced into China through commodity trade, leading to imported inflation. Countries with strong currencies often face the impact of foreign capital. Through foreign exchange control, commodity imports and capital inflows are restricted, the introduction of international inflation is blocked, and the stability of domestic price level is maintained.
4. Enhance the ability to repay foreign debts
Through foreign exchange control, we can increase China's international reserves and improve the ability to repay foreign debts.
What is foreign exchange control? What is the function of foreign exchange control?
Foreign exchange control refers to the restrictive measures taken by the state to balance the international payments and maintain the exchange rate of the local currency. It is also called foreign exchange management in China. An international trade policy that restricts imports by restricting international settlement and foreign exchange transactions through laws and regulations.
There are several functions: 1. Promote the balance of payments or improve the balance of payments. 2. Stabilize the local currency exchange rate and reduce the foreign exchange risk in foreign-related economic activities. 3. Prevent capital flight or large-scale speculative capital flow and maintain the stability of the domestic financial market. 4. Increase the country's international reserves. 5. Effective use of foreign exchange funds to promote the priority development of key industries. 6. Enhance the international competitiveness of domestic products. 7. Enhance financial security.
What is the content of foreign exchange management?
I. Control of foreign exchange income
Foreign exchange control can be divided into foreign exchange income control and foreign exchange expenditure control. According to the nature of foreign exchange receipts and payments, foreign exchange receipts and payments can be divided into capital receipts and payments, trade receipts and payments and non-trade receipts and payments. In Yan Kuan, where foreign exchange control is implemented, capital expenditure, non-trade expenditure and trade expenditure are generally carried out in turn.
1. foreign exchange income control
For trade and non-trade export of foreign exchange, concentrating foreign exchange income is the main goal of foreign exchange control. Increasing foreign exchange income can ensure the balance between import demand and international balance of payments. Regarding the concentration of export foreign exchange, it is generally stipulated that export foreign exchange must be sold to designated institutions or * * *. For example, China implements a compulsory foreign exchange settlement system. In order to increase trade and non-trade income, export enterprises are generally allowed to keep part of foreign exchange income or sell it to * * * at a more favorable exchange rate to encourage export enterprises to earn more foreign exchange. The control of capital gains mainly restricts the source, current period and use direction of capital gains. Generally speaking, most countries control short-term capital inflows more strictly than long-term capital inflows.
2. Control of foreign exchange expenditure
Many foreign exchange control countries are developing countries with foreign exchange shortage. Therefore, in order to promote economic development and ensure the foreign exchange demand of key construction projects, these countries have strict measures on foreign exchange expenditure. In terms of import foreign exchange expenditure, an import license system will be adopted. To apply for foreign exchange purchase and external payment, an import license must be obtained. In terms of capital export, foreign investment is generally not allowed unless there is special approval.
Two. Currency exchange control
Currency exchange control is an important part of foreign exchange control, and the control of foreign exchange receipts and payments is based on the concern for currency exchange, which can also be understood as the premise of currency exchange control. Contrary to currency exchange control, currency convertibility means that domestic currency can be freely converted into a foreign currency in the foreign exchange market, or foreign currency can be freely converted into domestic currency in the foreign exchange market. According to the definition of the International Monetary Fund, a country's currency is convertible if it is freely convertible under the current account. At present, most countries in the world have realized currency convertibility under current account.
Currency convertibility can be divided into trade item convertibility, non-trade item convertibility and capital item convertibility according to the scope; According to the classification of objects, it can be divided into free foreign exchange for enterprises and free foreign exchange for individuals. Trade account convertibility and non-trade account convertibility are collectively called current account convertibility.
Three. Exchange rate control
Exchange rate control includes exchange rate category control and exchange rate level control. At the exchange rate level, the focus is mainly on managing the exchange rate between domestic currency and foreign currency, overvaluing foreign currency and underestimating domestic currency, so as to achieve the purpose of "rewarding the best and limiting the entry". Exchange rate category control generally refers to the implementation of a rich exchange rate system. Compound exchange rate refers to the realization of two or more exchange rates in a country. According to different application objects, compound exchange rate can be divided into current account compound exchange rate and capital account compound exchange rate. The former can also be called trade and non-trade exchange rates, and the latter can be called financial exchange rates. The compound exchange rate is adopted to make the trade and non-trade exchange rates relatively stable, so as to stabilize the import, export and price levels, while the financial exchange rate is determined by the relationship between market supply and demand. For example, high-tech products use one exchange rate and traditional export commodities use another exchange rate. During the reform of China's foreign exchange system from 65438 to 0994, the exchange rates merged and the complicated exchange rate system was abolished. At present, few countries in the world adopt multiple exchange rate systems.
The purpose and method of foreign exchange management?
Purpose:
(1) Restrict the import of foreign commodities, promote the export of domestic commodities and expand domestic production.
(2) Restrict capital flight and foreign exchange speculation, stabilize the foreign exchange market and maintain the balance of payments.
(3) Stabilize the domestic price level and avoid the impact of huge price changes in the international market.
(4) Promote the transformation of imported goods from hard currency countries to soft currency countries and save hard currency.
(5) Urge other countries to revise their tariff policies and cancel commodity restrictions or other restrictions.
Methods: (1) intervened in the foreign exchange market.
(2) Adjust interest rates
(3) control capital flow
(4) freezing accounts
(5) Using gold reserves to improve the status of international payment.
What is foreign exchange control, and why does the country set up foreign exchange control?
Foreign exchange control refers to restrictive measures taken by a country to balance international payments and maintain its currency exchange rate. It is also called foreign exchange management in China. International trade policies of countries that restrict international settlement and foreign exchange transactions through laws and regulations. Foreign exchange control is divided into quantity control and cost control. The former means that the State Administration of Foreign Exchange directly restricts and allocates the volume of foreign exchange transactions, and achieves the purpose of restricting exports by controlling the total amount of foreign exchange; The latter means that the State Administration of Foreign Exchange implements a multiple exchange rate system for foreign exchange transactions, and uses the differences in foreign exchange transaction costs to adjust the structure of imported goods.
Why does the country control foreign exchange?
Most developing countries are relatively backward, with insufficient foreign exchange funds, deteriorating balance of payments and heavy debt burden. Therefore, foreign exchange control is an important tool for them to stabilize the local currency, ensure the independent development of the national economy, seek the balance of international payments, and try their best to prevent the limited foreign exchange funds from flowing out at will. Reducing the loss of national GDP is also a prevention and control of national capital loss.
What does foreign exchange control include?
I. Control of foreign exchange income
Foreign exchange control can be divided into foreign exchange income control and foreign exchange expenditure control. According to the nature of foreign exchange receipts and payments, foreign exchange receipts and payments can be divided into capital receipts and payments, trade receipts and payments and non-trade receipts and payments. In Yan Kuan, where foreign exchange control is implemented, capital expenditure, non-trade expenditure and trade expenditure are generally carried out in turn.
1. foreign exchange income control
For trade and non-trade export of foreign exchange, concentrating foreign exchange income is the main goal of foreign exchange control. Increasing foreign exchange income can ensure the balance between import demand and international balance of payments. Regarding the concentration of export foreign exchange, it is generally stipulated that export foreign exchange must be sold to designated institutions or * * *. For example, China implements a compulsory foreign exchange settlement system. In order to increase trade and non-trade income, export enterprises are generally allowed to keep part of foreign exchange income or sell it to * * * at a more favorable exchange rate to encourage export enterprises to earn more foreign exchange. The control of capital gains mainly restricts the source, current period and use direction of capital gains. Generally speaking, most countries control short-term capital inflows more strictly than long-term capital inflows.
2. Control of foreign exchange expenditure
Many foreign exchange control countries are developing countries with foreign exchange shortage. Therefore, in order to promote economic development and ensure the foreign exchange demand of key construction projects, these countries have strict measures on foreign exchange expenditure. In terms of import foreign exchange expenditure, an import license system will be adopted. To apply for foreign exchange purchase and external payment, an import license must be obtained. In terms of capital export, foreign investment is generally not allowed unless there is special approval.
Two. Currency exchange control
Currency exchange control is an important part of foreign exchange control, and the control of foreign exchange receipts and payments is based on the concern for currency exchange, which can also be understood as the premise of currency exchange control. Contrary to currency exchange control, currency convertibility means that domestic currency can be freely converted into a foreign currency in the foreign exchange market, or foreign currency can be freely converted into domestic currency in the foreign exchange market. According to the definition of the International Monetary Fund, a country's currency is convertible if it is freely convertible under the current account. At present, most countries in the world have realized currency convertibility under current account.
Currency convertibility can be divided into trade item convertibility, non-trade item convertibility and capital item convertibility according to the scope; According to the classification of objects, it can be divided into free foreign exchange for enterprises and free foreign exchange for individuals. Trade account convertibility and non-trade account convertibility are collectively called current account convertibility.
Three. Exchange rate control
Exchange rate control includes exchange rate category control and exchange rate level control. At the exchange rate level, the focus is mainly on managing the exchange rate between domestic currency and foreign currency, overvaluing foreign currency and underestimating domestic currency, so as to achieve the purpose of "rewarding the best and limiting the entry". Exchange rate category control generally refers to the implementation of a rich exchange rate system. Compound exchange rate refers to the realization of two or more exchange rates in a country. According to different application objects, compound exchange rate can be divided into current account compound exchange rate and capital account compound exchange rate. The former can also be called trade and non-trade exchange rates, and the latter can be called financial exchange rates. The compound exchange rate is adopted to make the trade and non-trade exchange rates relatively stable, so as to stabilize the import, export and price levels, while the financial exchange rate is determined by the relationship between market supply and demand. For example, high-tech products use one exchange rate and traditional export commodities use another exchange rate. During the reform of China's foreign exchange system from 65438 to 0994, the exchange rates merged and the complicated exchange rate system was abolished. At present, few countries in the world adopt multiple exchange rate systems.