The first is strict foreign exchange control, that is, controlling both current account and capital account at the same time. Countries that implement this kind of foreign exchange control usually have relatively backward economies, lack of foreign exchange funds and underdeveloped market mechanisms, so they try to maintain exchange rate stability, ensure the balance of international payments and ensure the development of national economy through centralized distribution and use of foreign exchange.

The second is partial foreign exchange control, that is, in principle, foreign exchange transactions in current account are not restricted, but foreign exchange transactions in capital account are restricted to some extent. About 20 countries including Japan, Denmark, Norway, France and Italy;

The third is completely free foreign exchange control, that is, there are no restrictions on foreign exchange transactions in current and capital accounts, foreign exchange is freely convertible, freely circulated, freely entered and exited, and financial liberalization is implemented. Such countries include the United States, Britain, Switzerland, the Netherlands, Singapore and oil exporting countries with large foreign exchange reserves (such as Kuwait and Saudi Arabia).

China's foreign exchange management system is basically part of foreign exchange control and current account convertibility; Implement certain controls on capital projects; To supervise the foreign exchange business of financial institutions; Prohibit the pricing, settlement and circulation of foreign currency in China; The bonded area implements differentiated foreign exchange management. This foreign exchange management system basically conforms to the development requirements of China's current market economy and international practice.

Extended data:

Foreign exchange management:

Also known as foreign exchange control, it refers to a restrictive policy measure for foreign exchange receipts and payments, transactions, lending, transfer, international settlement, foreign exchange rate and foreign exchange market.

1, Central Bank

Responsible for issuing domestic currency, controlling money supply, holding and dispatching foreign exchange reserves, and maintaining the internal and external value of domestic currency. Under the floating exchange rate system, the central bank is often forced to buy or sell foreign exchange in the foreign exchange market to intervene in the foreign exchange market and maintain market order.

2. Other banks

In any place, whether it is the main foreign exchange market or not, ordinary petty cash transactions and cheque cashing are almost completely monopolized by banks. The main business of the bank's foreign exchange department is to convert the assets and liabilities of customers in commercial transactions and financial transactions from one currency to another;

This conversion can be done in the form of spot transaction or forward transaction. As a large number of banks are engaged in foreign exchange trading, foreign exchange trading is becoming more and more popular.

Baidu encyclopedia-foreign exchange

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