Settlement of foreign exchange refers to the act of earning money abroad and converting it into local currency at the current foreign exchange market exchange rate in China. In China, foreign exchange earners can settle foreign exchange through banks or other authorized institutions to obtain local currency funds.

Second, what is the purchase of foreign exchange?

Purchase of foreign exchange refers to the purchase of foreign currency in local currency in the domestic foreign exchange market. In China, foreign exchange consumers can purchase foreign exchange through banks or other authorized institutions to obtain foreign currency funds.

Third, the difference between foreign exchange settlement and foreign exchange purchase

(1) There are essential differences in the operation between foreign exchange settlement and foreign exchange purchase. Settlement of foreign exchange is the act of converting foreign currency into local currency according to the exchange rate in the domestic foreign exchange market at that time, and purchase of foreign exchange is the act of buying foreign currency in local currency in the domestic foreign exchange market.

(2) Judging from the currencies involved, foreign exchange settlement is to convert foreign currency into local currency, and foreign exchange purchase is to convert local currency into foreign currency.

(3) From the object of operation, foreign exchange settlement is the exchange of local currency by overseas earners, and foreign exchange purchase is the purchase of foreign currency by domestic spenders.

(4) From the operational process, foreign exchange settlement is to collect foreign currency first, and then convert it into local currency according to the current exchange rate in the domestic foreign exchange market, while foreign exchange purchase is to buy foreign currency in local currency in the domestic foreign exchange market first, and then obtain foreign currency funds.

(5) For business purposes, foreign exchange settlement is to obtain local currency funds, and foreign exchange purchase is to obtain foreign currency funds.

(6) From the operation mode, foreign exchange settlement can be conducted through banks or other authorized institutions, and foreign exchange purchase can be conducted in the domestic foreign exchange market.

Settlement of foreign exchange and purchase of foreign exchange are two important trading forms in the foreign exchange market, which are essentially different in operation, such as different currencies involved, different operating objects, different operating processes, different operating purposes, different operating methods and so on. Therefore, foreign exchange investors need to clearly understand the differences between the two operations in order to correctly choose the investment method and realize the effective use of funds.