According to Article 8 of the Agreement of the International Monetary Fund, "General Obligations of Member States", a country's currency must meet three conditions to become a cash exchange:
1. There are no restrictions on the current account (trade and non-trade payments) and capital transfer in China's balance of payments.
2. Don't take discriminatory monetary measures or multi-currency exchange rates.
3. At the request of another member state, it is obliged to buy back the remaining domestic currency in the current account of the other party at any time.
A freely convertible currency is widely used in international exchange settlement, freely traded in the international financial market, and freely convertible into the currencies of other countries. In international trade, the import and export trade settled in these freely convertible currencies is called spot trade.
Extended data:
① Voucher payment. Before the goods are shipped, the seller must receive the letter of credit or guarantee issued by the other party through a bank that meets the requirements of the contract, and the bank plays the role of intermediate guarantee.
② Unlicensed payment. It doesn't need the guarantee of financial institutions, and it depends entirely on the credit of both parties to the transaction; Although the price settlement has to go through the bank, the bank is only entrusted to handle the payment on behalf of the relevant transactions. No matter whether it is paid with certificate or without certificate, the payment must be settled with the stipulated shipping documents. Payment time can be different, such as early payment, immediate payment and deferred payment.
China's trade with western countries, Hong Kong and Macao mainly adopts cash trade, and sometimes other ways of receiving and paying foreign exchange are adopted appropriately.
Cash trade, free settlement of foreign exchange, international trade, financial market, international currency.
IMF temporary credit loan? Barter trade? Free foreign exchange? Border small-scale trade
Baidu encyclopedia-cash transaction