The system of bank settlement and sale of foreign exchange means that the foreign exchange income of an enterprise should be settled at the designated foreign exchange bank at the exchange rate of the day and converted into RMB by the bank. If an enterprise needs foreign exchange, it can directly purchase foreign exchange at the designated foreign exchange bank with valid vouchers. Designated foreign exchange banks refer to banks approved by the State Administration of Foreign Exchange to engage in foreign exchange settlement and sale business.

Designated foreign exchange banks shall handle the settlement and sale of foreign exchange, open foreign exchange accounts and make external payments in accordance with the Interim Provisions on the Administration of Settlement, Sale and Payment of Foreign Exchange.

All foreign exchange earnings of domestic enterprises, institutions, organs and social organizations (hereinafter referred to as "domestic institutions") must be repatriated in time, and settlement, purchase, opening of foreign exchange accounts and external payment shall be handled in accordance with the Interim Provisions on the Administration of Settlement, Sale and Payment of Foreign Exchange.