Foreign exchange has both dynamic and static meanings.
The dynamic meaning of foreign exchange refers to the international exchange behavior and process of converting one country's currency into another country's currency, that is, a special commercial activity to pay off international creditor's rights and debts.
The static meaning of foreign exchange refers to the financial assets expressed in foreign currency that can be used for external payment. Article 3 of the Regulations on Foreign Exchange Control in People's Republic of China (PRC) stipulates: "Foreign exchange as mentioned in these Regulations refers to the following means of payment and assets that can be used for international settlement in foreign currencies: (1) Foreign currencies, including banknotes and coins; (2) Foreign currency payment vouchers, including bills, bank deposit vouchers and postal savings vouchers; Foreign currency securities, including government bonds, corporate bonds and stocks; (4) Special drawing rights; (5) Other foreign exchange assets. "
With the in-depth development of China's reform and opening up, foreign-related economic activities have penetrated into all fields of the national economy. Whether it is import and export trade, scientific and technological academic exchanges, or the introduction of foreign capital, the issuance of B shares, H shares or global government bonds, and overseas securities financing, almost all involve foreign exchange, that is, foreign payment means different from RMB. As an international means of payment, foreign exchange is active in international trade and international financial markets. Compared with RMB, its activities are more unpredictable due to complex international factors.
Foreign exchange is a product of international trade and a means of payment for international trade settlement. Foreign exchange refers to foreign exchange, "exchange" refers to the transfer of money in different places, and "exchange" refers to the conversion between currencies. From a dynamic point of view, foreign exchange refers to the exchange of one country's currency into another country's currency, which is circulated internationally to settle the creditor's rights and debts arising from international economic exchanges. From a static point of view, foreign exchange is also a means and tool for international settlement, such as foreign currency and various securities denominated in foreign currency. The International Monetary Fund (IMF) defines foreign exchange as: "Foreign exchange is the creditor's rights held by monetary authorities (central bank, monetary management institutions, foreign exchange stabilization fund and the Ministry of Finance) in the form of bank deposits, treasury bonds and long short-term government bonds, which can be used when the balance of payments is in deficit. These include bonds that are not circulated in the market due to central bank and intergovernmental agreements, regardless of whether they are expressed in the currencies of debtor countries or creditor countries. " According to the definition of IMF, China has made more explicit provisions on foreign exchange. Article 2 of the Provisional Regulations on Foreign Exchange Control in People's Republic of China (PRC) stipulates that foreign exchange refers to 1. Foreign currency, including banknotes and coins; 2. Foreign currency securities, including government bonds, government bonds, corporate bonds, stocks, coupons, etc. ; 3. Foreign currency payment vouchers, including bills, bank deposit vouchers and postal savings vouchers; 4. Other foreign exchange funds.
Formally speaking, foreign exchange is a foreign currency or foreign currency assets, but it cannot be considered that all non-domestic currencies are foreign exchange, and only those convertible foreign currencies can become foreign exchange. The currency of a country that accepts the provisions of Article 8 of the International Monetary Fund Agreement is internationally recognized as a freely convertible currency. These countries must abide by three laws and regulations: 1. Do not restrict the payment and capital transfer of frequent international exchanges; 2. Do not implement discriminatory monetary measures or multi-currency exchange rates; At the request of another member state, it is always obliged to exchange the other party's national currency in current transactions. Up to now, the currencies of more than 50 countries in the world are freely convertible. In addition, the currencies of all countries that accept the provisions of Article 14 of the International Monetary Fund Agreement are regarded as limited convertible currencies, and the similarity of these currencies is manifested in the imposition of various restrictions on international current payments and capital transfer. For example, restricting residents' free convertibility or restricting foreign exchange in capital projects. China's RMB is a limited convertible currency.
In China, more than 20 foreign currencies can be listed and traded in the foreign exchange market. They are: US Dollar, Deutsche Mark, Euro, Japanese Yen, British Pound, Swiss Franc, FRF, ITL, NLG, BEC and Danish Krone.
foreign exchange
Payment in foreign currency in international settlement.
The International Monetary Fund's interpretation of foreign exchange is:
Foreign exchange is the creditor's rights held by the monetary authorities in the form of bank deposits, treasury bonds and long short-term government bonds. , which can be used when there is a deficit in the balance of payments, including the creditor's rights that are not circulated in the market due to the agreement between the central bank and the government, whether expressed in the currency of the debtor country or the currency of the creditor country.
China's foreign exchange refers to:
Foreign currency, including banknotes and coins;
Foreign currency securities, including government bonds, government bonds, corporate bonds, stocks, coupons, etc. ;
Foreign currency payment vouchers, including bills, bank deposit vouchers and postal savings vouchers. ;
Other foreign exchange funds.
Foreign exchange classification:
1. Free convertibility at any time: free foreign exchange, accounting.
2. According to the source and purpose of foreign exchange: trade foreign exchange, non-trade foreign exchange.
3. According to the unnecessary requirements of foreign exchange management: resident foreign exchange and non-resident foreign exchange.