According to the information "Compulsory Settlement and Sale of Foreign Exchange System Withdraws from the Historical Stage" issued by the State Administration of Foreign Exchange, the compulsory settlement and sale of foreign exchange system refers to the management arrangement that foreign exchange income obtained by residents must be sold to and purchased from financial institutions designated by the state when using foreign exchange. Residents have no autonomy to retain and use foreign exchange. This system is mostly adopted by economies lacking foreign exchange resources. During the planned economy period, due to the shortage of foreign exchange, China implemented strict mandatory planned management of foreign exchange receipts and payments. Since the reform and opening up, in order to meet the needs of establishing a socialist market economic system in China, the reform of the foreign exchange management system has been promoted in an orderly manner, the residents' autonomy in using foreign exchange has been steadily expanded, and the degree of trade and investment facilitation has been continuously improved. 1994 65438+ 10, China cancelled the examination and approval of foreign exchange use plan for current account such as enterprise import, and allowed enterprises to purchase foreign exchange directly at designated foreign exchange banks with valid certificates. 199665438+February, China announced the realization of current account convertibility, and there are no restrictions on external payment and transfer of current account, but foreign exchange income such as export of enterprises should still be sold to designated foreign exchange banks in principle.