Settlement of foreign exchange refers to the behavior that the owner of foreign exchange income sells his foreign exchange income to the designated foreign exchange bank, and the designated foreign exchange bank pays the equivalent local currency at a certain exchange rate. Generally speaking, it is the act of changing your foreign currency into RMB at the bank.

The sale of foreign exchange refers to the behavior of designated foreign exchange banks selling foreign exchange to foreign exchange users and collecting the equivalent RMB at the RMB exchange rate on the transaction date. In layman's terms, it is the act of taking your RMB to the bank and converting it into foreign currency.