Locking in foreign exchange is to lock in the exchange rate and settle accounts according to this exchange rate within a certain period of time. In banks, this business is called forward settlement and sale of foreign exchange. In the case of frequent exchange rate fluctuations, banks handle the operation of locking the exchange rate for enterprises.

Locking the exchange rate in the bank is called forward settlement and sale of foreign exchange. In the case of frequent exchange rate fluctuations, banks handle the operation of locking the exchange rate for enterprises. On the day of settlement of foreign exchange, it is not according to the foreign exchange quotation of the day, but according to the previously determined exchange rate.

Matters needing attention in locking foreign exchange

Under normal circumstances, our foreign traders or foreign trade companies want to settle foreign exchange with the bank in the future because the amount of foreign trade orders is relatively large and the contract period is relatively long, but the exchange rate trend of the country where the merchants who signed foreign trade orders with us is very unstable.

The original intention of locking the exchange rate business is not to let our merchants earn the exchange rate difference, but to prevent our merchants from causing huge economic losses due to the falling exchange rate, which in turn leads to the ineffective implementation of the contracts signed by our foreign traders and customers.