Since the reform of foreign exchange system from 65438 to 0994, China has been implementing a mandatory system of bank settlement and sale of foreign exchange. Settlement of foreign exchange refers to the act that the payee sells the foreign exchange income to the designated foreign exchange bank, and the designated foreign exchange bank pays the local currency at the market exchange rate. Settlement of foreign exchange is divided into compulsory settlement, willingness settlement and quota settlement. Compulsory foreign exchange settlement means that all foreign exchange income must be sold to designated foreign exchange banks, and foreign exchange is not allowed to be retained; Willingness to settle foreign exchange means that foreign exchange income can be sold to designated foreign exchange banks or left in foreign exchange accounts, and the owner of foreign exchange income decides whether to settle foreign exchange; Quota settlement means that foreign exchange income can be settled within the limits approved by the state, and those exceeding the limits must be sold to designated foreign exchange banks.
The purpose of implementing the foreign exchange settlement system is to remit the foreign exchange income of Chinese enterprises into foreign exchange reserves in time and in full, so as to provide guarantee for import payment. Usually, when the foreign exchange reserves are small, the forced settlement of foreign exchange is mainly adopted; With the lifting of foreign exchange bottleneck, the willingness to settle foreign exchange is more in line with the needs of indirect management. According to the current situation of China's foreign exchange receipts and payments, China adopts two ways at the same time: compulsory settlement of foreign exchange income of ordinary Chinese-funded enterprises, and Chinese-funded enterprises and foreign-invested enterprises with a certain annual import and export volume and registered capital can open foreign exchange accounts and implement quota settlement. Under the bank settlement system, especially under the compulsory settlement system, designated foreign exchange banks passively buy foreign exchange from enterprises and individuals, unable to choose the currency and quantity of foreign exchange, and the resulting foreign exchange positions are particularly vulnerable to foreign exchange risks.