Due to the great differences in foreign exchange markets among countries, for example, many western countries have relatively free currency flow, while China's capital flow is strictly controlled, so the following mainly introduces the relevant situation of China's foreign exchange market supervision. The main goal of foreign exchange supervision in China is to strengthen foreign exchange management, promote the balance of international payments and promote the healthy development of the national economy. The specific supervision department is the foreign exchange administration department of the State Council and its branches, usually the State Administration of Foreign Exchange. Generally speaking, foreign exchange refers to the following means of payment and assets expressed in foreign currency that can be used for international settlement: foreign currency cash, including banknotes and coins; Foreign currency payment vouchers or payment instruments, including bills, bank deposit vouchers, bank cards, etc. ; Foreign currency securities, including bonds and stocks; Special drawing rights; Other foreign exchange assets. The main business activities of China's foreign exchange supervision include the foreign exchange receipts and payments or foreign exchange business activities of domestic institutions and individuals, as well as the foreign exchange receipts and payments or foreign exchange business activities of overseas institutions and individuals in China.

Financial institutions engaged in foreign exchange business in China shall open foreign exchange accounts for customers in accordance with the provisions of the foreign exchange administration department of the State Council, and handle foreign exchange business through foreign exchange accounts. Financial institutions engaged in foreign exchange business shall submit their clients' foreign exchange receipts and payments and account changes to foreign exchange management agencies according to law. China prohibits the circulation of foreign currency, and it is not allowed to settle accounts in foreign currency, unless otherwise stipulated by the state. At present, China has no restrictions on the settlement of income and expenditure under current account, but the situation under capital account is different. Foreign exchange receipts and payments under the current account should have a real and legal trading basis. Financial institutions engaged in the settlement and sale of foreign exchange shall, in accordance with the provisions of the foreign exchange administration department of the State Council, conduct a reasonable examination of the authenticity of transaction documents and their consistency with foreign exchange receipts and payments. Foreign exchange management agencies have the right to conduct supervision and inspection. Current account foreign exchange income can be retained or sold to financial institutions engaged in foreign exchange settlement and sale in accordance with relevant state regulations. Accordingly, the foreign exchange expenditure of current account should be paid by its own foreign exchange with valid vouchers, or by purchasing foreign exchange from financial institutions engaged in settlement and sale of foreign exchange in accordance with the provisions of the foreign exchange administration department of the State Council. The declaration limit for bringing foreign currency cash into and out of the country shall be stipulated by the foreign exchange administration department of the State Council.

In terms of capital projects, foreign institutions and individuals making direct investments in China shall register with the foreign exchange administration authorities after being approved by the relevant competent authorities. Engaged in the issuance and trading of securities or derivatives, shall abide by the relevant provisions of the state on market access, and shall be registered in accordance with the provisions of the foreign exchange administration department of the State Council. Domestic institutions and individuals who directly invest abroad or engage in the issuance and trading of overseas securities and their derivatives shall register in accordance with the provisions of the foreign exchange administration department of the State Council. Where the approval or filing by the relevant competent authorities is required by the state, the approval or filing formalities shall be handled before the foreign exchange registration.

The state implements scale management of foreign debts. Borrowing foreign debts shall be handled in accordance with the relevant provisions of the state, and foreign debts shall be registered with the foreign exchange administration. To provide external guarantee, an application shall be submitted to the foreign exchange bureau, which shall make a decision on approval or disapproval according to the applicant's assets and liabilities; If the state stipulates that its business scope needs to be approved by the relevant competent authorities, it shall go through the approval procedures before applying to the foreign exchange bureau. After the signing of the foreign guarantee contract, the applicant shall register the foreign guarantee with the foreign exchange bureau.

The retention of foreign exchange income from capital projects or the sale to financial institutions engaged in foreign exchange settlement and sale business must be approved by the foreign exchange administration, except for those that are not required by the state. The foreign exchange expenditure of capital account shall be paid by its own foreign exchange with valid vouchers, or by purchasing foreign exchange from financial institutions engaged in settlement and sale of foreign exchange in accordance with the provisions of the foreign exchange administration department of the State Council. After the legally terminated foreign-invested enterprises have been liquidated and paid taxes in accordance with the relevant provisions of the state, the RMB owned by foreign investors can be purchased and remitted from financial institutions engaged in foreign exchange settlement and sale. Capital account foreign exchange and settlement funds shall be used in accordance with the purposes approved by the relevant competent departments and foreign exchange management agencies. The foreign exchange administration authorities have the right to supervise and inspect the use of foreign exchange settlement funds for capital projects and the changes in accounts. Financial institutions operating or terminating the foreign exchange settlement and sale business shall be approved by the foreign exchange administration; The operation or termination of other foreign exchange businesses shall be approved by the foreign exchange bureau or the financial industry supervision and regulation institution in accordance with the division of responsibilities. The foreign exchange management agencies shall implement comprehensive position management for the foreign exchange business of financial institutions. If the capital, profits and foreign currency assets of financial institutions need to be converted between RMB and foreign currency, they must be approved by the foreign exchange administration.

RMB exchange rate is a managed floating exchange rate system based on market supply and demand. Financial institutions engaged in settlement and sale of foreign exchange and other institutions that meet the requirements stipulated by the foreign exchange administration department of the State Council can conduct foreign exchange transactions in the inter-bank foreign exchange market in accordance with the regulations of the foreign exchange administration department of the State Council. Trading in the foreign exchange market should follow the principles of openness, fairness, impartiality and good faith. The foreign exchange administration department of the State Council shall supervise and manage the national foreign exchange market according to law. The foreign exchange administration department of the State Council can regulate the foreign exchange market according to the changes of the foreign exchange market and the requirements of monetary policy.