Foreign currency mainly refers to freely convertible foreign currency brought in from abroad or held by individuals, and simply refers to foreign paper money held by individuals, such as US dollars, Japanese yen and British pounds.
Foreign exchange refers to foreign currency bills and vouchers imported from abroad or brought in or sent in from abroad. In our daily life, we often come into contact with overseas remittances and traveler's checks. In addition, foreign exchange is a variety of means of payment for international settlement, including bank certificates of deposit, checks and drafts. In addition, securities expressed in foreign currencies, such as government bonds, corporate bonds and stock certificates, can also play the role of foreign exchange.
Second, the relationship between foreign exchange and foreign currency:
1: Foreign exchange includes foreign currency, but foreign currency cannot always be said as foreign exchange.
2. Foreign exchange can be converted into foreign currency, and foreign currency can be bought by paper money and sold abroad.
3. How to convert foreign exchange and foreign currency:
Generally speaking, only freely convertible foreign currency is foreign exchange, because the essence of foreign exchange is an international means of payment. If a currency is not freely convertible, it cannot become an international means of payment. At this time, foreign currency can only be called [cash], which is concrete and real foreign banknotes and coins. Because cash is in physical form, banks must transport it to foreign clearing banks, so that cash can become real foreign exchange funds for banks. Therefore, the bank will take care of it, and the transportation costs will be borne by the customers. Therefore, when exchanging foreign currency (especially when the foreign currency and cash planted by residents are converted into RMB), the exchange price of paper money is different from that of remittance. Cash remittance is foreign exchange on the books. When they are transferred out of the country, there is no physical transfer, and they can be directly remitted, just a transfer on the books. For banks, it is only recorded in the books, and there is no need to keep it.
As for the handling fee, the actual bank does not charge any extra handling fee when handling the exchange business, and the cost is reflected in the transaction spread. If so, foreign currency can be called foreign exchange.
Generally speaking, the scope of foreign exchange is large.
Please adopt it.