1. When traveling between the mainland and Hong Kong, it is inevitable to exchange Hong Kong dollars and RMB. The mainland generally chooses bank exchange. Hong Kong is the financial center of Asia and the freest trading port in the world. There are no restrictions on currency trading and international capital flow. So apart from banks, the streets are full of money exchange shops that can freely exchange all kinds of foreign currencies. Hong Kong is one of the safest areas in the world, and counterfeit money is hard to see. You can exchange foreign currency at the exchange shop with confidence.
Second, RMB is converted into Hong Kong dollars.
The exchange rates of major banks in the mainland are similar. Industrial and Commercial Bank of China, the cash selling price of HK$ is 0.847. That is, RMB 100 can be converted into Hong Kong dollars 1 18.06. Hong Kong Xu Shi Brothers is one of the most famous chain exchange shops in Hong Kong. At the same time, its exchange rate is RMB, and the buying price is 0.85. That is, RMB 100 can be converted into HK$ 1 17.65. Therefore, it is more cost-effective for mainland banks to exchange RMB for Hong Kong dollars.
3. The buying price of China Industrial and Commercial Bank in Hong Kong dollars is 0.8366. That is, 100 Hong Kong dollars can be converted into 83.66 RMB. The selling price of RMB in Xu Shi is 0.844. That is, 100 Hong Kong dollars can be converted into 84.4 RMB. Therefore, it is more cost-effective to exchange Hong Kong dollars for RMB in Hong Kong. Of course, the most cost-effective way is to find a friend to exchange directly with the middle price. This is called "knocking", which is mutually beneficial.
Foreign currency can be directly converted into RMB or other currencies in circulation at the bank. If you want to change it directly into RMB, you must go to the Bank of China to change it. The bank will convert it into RMB at the "cash buying price" according to the foreign exchange rate of the day. If you want to change it into other foreign currencies, you can go to Bank of China or other banks that provide foreign currency exchange and directly change it into other foreign currencies! Of course, other banks can also indirectly convert your foreign currency into RMB, but it is more troublesome. You need to open an account and deposit foreign currency first, and then handle the foreign exchange settlement business for you.