When you take out dollars and deposit them in the bank, it becomes "cash".
Extended data:
There are three differences between cross-border remittance of cash and cash:
First of all, the essence of the two is different:
1. The essence of cross-border remittance cash: various payment vouchers expressed in foreign currencies can be circulated and transferred in the international market, and can be freely converted into foreign currencies of other countries.
2. The essence of cross-border remittance of cash: concrete and real foreign banknotes and coins. When customers want to transfer cash abroad, they can bring cash or remit money.
Second, the management of the two is different:
1. Management of cross-border remittance cash: foreign exchange widely used in international settlement, paid internationally and freely convertible into other countries' currencies. The countries that issue these currencies have loose foreign exchange control and control, and some have even basically abolished foreign exchange control, while some countries have strict foreign exchange control, so their currencies cannot be freely converted into internationally used foreign currencies.
2. Management of cross-border remittance of cash: In the foreign exchange quotations published by designated foreign exchange banks, the buying price of cash is less than the buying price of cash, while the selling price of cash is equal. This shows that the country's foreign exchange management policy is to encourage the holding of cash and limit the holding of cash because cash is more convenient for foreign exchange management than cash.
Third, they are different in nature:
1. Nature of cross-border remittance cash: free foreign exchange.
2. Cash nature of cross-border remittance: book foreign exchange.
The popular understanding is:
1, different from the point of view of circulation.
Because foreign currency cash cannot circulate in China, cash can be settled directly electronically, and the liquidity of cash is better than cash, which determines that the price of cash bought by banks is a little more expensive than cash, that is, the price of cash sold by customers is a little more expensive than cash.
2. From the perspective of storage.
It takes some time for banks to collect foreign currency cash and accumulate it to a certain amount before it can be transported and deposited in foreign banks for transfer. During this period, banks have to bear certain interest losses and freight, insurance and other expenses during transportation.
Therefore, the bank will transfer these losses and expenses to the customers who sell cash, so the price paid by the bank to buy cash is lower than the price of buying cash, that is, the price of customers selling cash is lower than the price of buying cash.
3. Different values
Take the dollar as an example. When sending money abroad, the cash amount is limited to the equivalent of 2000 US dollars, and the cash remittance is equivalent to 50,000 US dollars. Cash remittance also charges the difference between cash and foreign exchange, and the dollar is about 0.9% (in different currencies).
Cash refers to foreign currency notes held by individuals. Cash refers to foreign currency bills and vouchers.