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Are the foreign exchange of the four major banks converted into Japanese yen?
Yes

According to Zhong Yi Finance Network, China's four major banks refer to Industrial and Commercial Bank, China Construction Bank, Bank of China and Agricultural Bank. There are nine kinds of foreign currencies in personal foreign exchange transactions: US dollar, Japanese yen, Hong Kong dollar, British pound, euro, Swiss franc, Canadian dollar, Australian dollar and Singapore dollar. So the yen is transferred from Japanese foreign exchange.