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.

China's current foreign exchange management system basically belongs to partial foreign exchange control, that is, foreign exchange transactions in current account are not subject to or basically not subject to foreign exchange control, but foreign exchange transactions in capital account are subject to certain restrictions.

The goal of China's foreign exchange system reform is to create conditions for gradual liberalization, promote capital account convertibility on the basis of current account convertibility, and realize full convertibility of RMB.

Current account convertibility:

Refers to all kinds of transactions under the current account, including import and export of goods, payment of transportation fees, insurance premiums, labor services, outbound tourism, investment profits, loan interest, dividends, bonuses, etc. There is no restriction when purchasing foreign exchange from banks or paying from foreign exchange accounts.

During the period of 1997, the State Council passed legislation to make it clear that China will implement RMB convertibility under current account, which added the provisions that the state does not restrict regular international payments and transfers.