Forward settlement and sale of foreign exchange business refers to that designated foreign exchange banks negotiate and sign forward settlement and sale contracts with customers, and stipulate the currency, amount, exchange rate and term of forward settlement and sale; When due foreign exchange income or expenditure occurs, the foreign exchange settlement or sale business shall be handled in accordance with the currency, amount, term and exchange rate agreed in the forward foreign exchange settlement and sale contract.

Why do you want to handle the forward foreign exchange settlement and sale business?

Through the forward settlement and sale of foreign exchange, customers can effectively avoid exchange rate risks and lock in the transaction costs or benefits in the future. And customers can choose favorable trading opportunity and price according to their own situation, so as to improve the efficiency of capital use.

For example, Morningstar Company wants to transfer its equity of a company to United Star Company of America. The agreed purchase amount is 1 100 million USD, and the purchase funds will be remitted in three months. In order to avoid exchange rate risk, Morningstar Company applied to our bank for a three-month forward settlement transaction on March 12, 2002.

The three-month forward settlement price of our bank was 827.53 on March 12, and the delivery date was June 12, 2003. At that time, Morningstar will pay10 billion USD, and our bank will pay 827.53 yuan/100 *100 USD to Morningstar. Morningstar Company locked in the income at the exchange rate of 827.53, thus avoiding the risk of RMB appreciation.