1, meaning of foreign exchange: means of payment for international settlement expressed in foreign currency. Foreign exchange includes foreign currency, foreign currency securities (foreign currency stocks, foreign currency bonds and foreign currency negotiable certificates of deposit) and foreign currency payment vouchers (checks, credit cards, etc.). ), etc. 2. The difference between foreign exchange and foreign currency: foreign exchange is not equal to foreign currency, including foreign currency securities and foreign currency payment vouchers; Foreign currency is not equal to foreign exchange, and not all foreign currencies are foreign exchange. Under normal circumstances, 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. 3. Meaning of exchange rate: Exchange rate, also known as exchange rate, is the exchange rate between two currencies, which is the ratio, parity or price of one currency to another. Not the exchange rate of the two currencies. Such as RMB and Hong Kong dollars. Due to international trade and non-trade exchanges, it is necessary to handle international settlement, so the currency of one country or region has an exchange rate with the currencies of other countries or regions.