Settlement of foreign exchange is the abbreviation of foreign exchange settlement, which refers to the behavior of foreign exchange earners selling their foreign exchange income to designated foreign exchange banks, and the banks pay the equivalent RMB at a certain exchange rate, which can be divided into three basic ways:

(1) Forced foreign exchange settlement;

(2) willingness to settle foreign exchange;

(3) Ultimate settlement or partial settlement;

These three methods of foreign exchange settlement are important documents for companies and banks. Investors should pay attention to check the foreign exchange settlement memo to avoid unnecessary losses.

Second, conversion is considered.

Conversion transaction is a foreign currency conversion transaction, which refers to the transaction in which the enterprise settles the currency other than the bookkeeping base currency according to the value of the bookkeeping base currency. There are two basic links in converting futures index into account: first, initial confirmation when foreign currency transactions occur and difference confirmation when settlement occurs; Second, when checking the balance sheet, the related items of foreign currency transactions should be converted; The basic conversion process is as follows:

In the process of trading, investors should help banks to carry out foreign currency conversion transactions. At the beginning of the transaction, they should use the spot exchange rate on the trading day to convert the foreign currency into the amount in the functional currency. When the foreign currency is converted into account, the exchange rate should be the spot exchange rate of the previous year, but there are still some operational skills in foreign currency conversion: ① Select the current exchange rate as the conversion exchange rate and include the conversion difference in the current profit and loss; ② Use the spot exchange rate on the trading day or the approximate exchange rate of the spot exchange rate for conversion.