Dynamic concept refers to a specialized business activity of converting one country's currency into another country's currency to pay off international creditor's rights and debts. It's short for foreign exchange. The static concept of foreign exchange refers to the means of payment expressed in foreign currency that can be used for international settlement. This means of payment includes credit instruments and securities expressed in foreign currency, such as bank deposits, commercial bills, bank drafts, bank checks, foreign government treasury bills and their long-term and short-term securities.
What people usually call foreign exchange is generally in its static sense. It is a foreign currency or a means of payment expressed in foreign currency, which can be used for international settlement.
The exchange rate is the price expressed by the domestic currency in another country's currency, and its level is ultimately determined by the foreign exchange market. Foreign exchange transactions are generally concentrated in financial institutions such as commercial banks. The purpose of buying and selling foreign exchange is to pursue profits. The way is to buy cheap and sell expensive, and earn the bid-ask difference. The exchange rate at which they buy foreign exchange is the buying exchange rate, also known as the buying price. The exchange rate of selling foreign exchange is called selling exchange rate, also known as selling price.
Exchange rate, also known as exchange rate, refers to the price expressed by one country's currency in another country's currency, or the price comparison between two currencies. In the foreign exchange market, the exchange rate is displayed in five digits, such as: euro EUR0.9705, yen JPY 1 19.95, pound GBP 1.5237, Swiss franc CHF 1.5003. The minimum change unit of the exchange rate is one point, that is, the last one. For example, EUR0.000 1, JPY0.0 1, GBP0.000 1, CHF0.000 1. According to international practice, three English letters are usually used to indicate the name of currency, and the English after the above Chinese name is the English code of currency.