1, its own risk tolerance.
2. Exchange rate risk. For some cross-currency structured foreign exchange wealth management products, investors should be alert to exchange rate risks.
3. The product is linked to the target. Among the structured foreign exchange wealth management products issued by banks, there are many products with interval accumulation and directly linked interest rates, and the structured foreign exchange wealth management products linked to the prices of energy, precious metals and index funds have also increased.
4. Redemption conditions.
Foreign currency is the creditor's rights held by monetary authorities in the form of bank deposits, treasury bonds of the Ministry of Finance and long short-term government bonds. Can be used when the balance of payments is in deficit.
Foreign exchange mainly includes foreign currency, foreign currency deposits and foreign currency securities. It is an important part of a country's international reserves and the main means of payment to pay off international debts.
Universal classification
According to the degree of restriction: it is divided into freely convertible foreign exchange, limited freely convertible foreign exchange and bookkeeping foreign exchange.
Freely convertible foreign exchange is the most used foreign exchange in international settlement, which can be bought and sold freely in the international financial market, can be used to pay off creditor's rights and debts in international finance, and can be freely converted into currencies of other countries. Such as US dollars, Hong Kong dollars and Canadian dollars.
Limited freely convertible foreign exchange refers to foreign exchange that cannot be freely converted into other currencies or paid to a third country without the approval of the issuing country. According to the regulations of the International Monetary Fund, all currencies with certain restrictions on international current payments and capital transfer are restricted freely convertible currencies. More than half of the national currencies in the world are limited convertible currencies, including RMB.
Bookkeeping foreign exchange, also known as clearing foreign exchange or bilateral foreign exchange, refers to foreign exchange deposited in bank accounts designated by both parties and cannot be converted into other currencies or paid to third countries.
According to source use: it is divided into trade foreign exchange, non-trade foreign exchange and financial foreign exchange.
Trade foreign exchange, also known as physical trade foreign exchange, refers to foreign exchange derived or used in import and export trade, that is, international payment means formed by international commodity circulation.
Non-trade foreign exchange refers to all foreign exchange except trade foreign exchange, that is, all foreign exchange that is not derived from or used for import and export trade, such as labor foreign exchange, remittance, donation foreign exchange, etc.
Different from trade foreign exchange and non-trade foreign exchange, financial foreign exchange belongs to a kind of financial asset foreign exchange, such as inter-bank trading foreign exchange, which is neither derived from tangible trade nor intangible trade, nor used for tangible trade, but used for the management and manipulation of various currency positions.
According to the market trend: it is divided into hard foreign exchange and soft foreign exchange, or strong currency and weak currency.