"Foreign exchange has two meanings: dynamic foreign exchange refers to people changing one currency into another to pay off international creditor's rights and debts. The concept of foreign exchange in this sense is equivalent to international settlement. ?

In the static sense, foreign exchange can be divided into broad sense and narrow sense:

Static foreign exchange in a broad sense refers to all assets expressed in foreign currency. This concept is widely used in the foreign exchange management laws of China and other countries. For example, in China, according to the revised Regulations on Foreign Exchange Control of People's Republic of China (PRC) issued by 19971October 20th, foreign exchange refers to:

(1) foreign currency, including banknotes and coins;

(2) Foreign currency payment vouchers, including bills, bank deposit vouchers and postal savings vouchers;

(3) Foreign currency securities, including government bonds, corporate bonds and stocks. ;

(4) Special Drawing Rights and European Monetary Units;

(5) Other foreign exchange assets. In this sense, foreign exchange is a foreign currency asset.

Foreign exchange in a narrow sense refers to the means of payment expressed in foreign currency that can be used for international settlement. In this sense, only foreign currency funds deposited in foreign banks and foreign currency bills that concretize bank deposit claims constitute foreign exchange, mainly including bank drafts, checks, bank deposits, etc. This is the usual concept of foreign exchange.