Legal analysis: In the past 30 years, China's foreign exchange management system reform has gone through three important stages. First, from 1978 to 1993, the reform started, characterized by a dual-track system. We will implement the foreign exchange retention system, establish and develop the foreign exchange swap market, establish a dual exchange rate system where the official exchange rate and the swap market exchange rate coexist, and implement a foreign exchange management system that combines planning and market. But at the beginning of the reform, foreign exchange reserves were very limited. 1978, China's foreign exchange reserves were only $65,438+67 million. During the period from 1978 to 12 of 1989, except that 1989 was $5.6 billion, the balance of foreign exchange reserves in other years did not exceed $5 billion. Second, from 1994 to the beginning of this century, the State Administration of Foreign Exchange cancelled the retention and settlement of foreign exchange, implemented the settlement and sale of foreign exchange by banks, implemented a single and managed floating exchange rate system based on market supply and demand, established a unified and standardized foreign exchange market in China, realized the convertibility of RMB under current account, and initially established the basic position of the market in the allocation of foreign exchange resources. In particular, we have successfully resisted the impact of the Asian financial crisis during this period. Third, since the beginning of the new century, the market system has been further improved, China has accelerated its integration into economic globalization, further expanded its opening to the outside world, and the foreign exchange situation has undergone fundamental changes. Foreign exchange management has changed from "lenient entry and strict exit" to balanced management, promoting capital account convertibility in an orderly manner, further exerting the role of interest rates and exchange rates, promoting the balance of international payments, and paying attention to preventing international economic risks.

Legal basis: Provisional Regulations of People's Republic of China (PRC) Municipality on Foreign Exchange Control.

Article 1 These Regulations are formulated for the purpose of strengthening foreign exchange management, promoting the balance of international payments and promoting the healthy development of the national economy.

Article 2 The foreign exchange administration department of the State Council and its branches (hereinafter referred to as the foreign exchange administration department) shall perform their foreign exchange administration duties according to law and be responsible for the implementation of these Regulations.

Article 3 Foreign exchange as mentioned in these Regulations refers to the following means of payment and assets expressed in foreign currencies that can be used for international settlement:

(a) Cash in foreign currencies, including banknotes and coins; (2) Foreign currency payment vouchers or payment instruments, including bills, bank deposit vouchers, bank cards, etc. ; Foreign currency securities, including bonds and stocks; (4) Special drawing rights; (5) Other foreign exchange assets.