The narrow foreign exchange market refers to the place where foreign exchange banks conduct foreign exchange transactions. Foreign exchange in a narrow sense refers to the means of payment expressed in foreign currency that can be used for international settlement. In this sense, only foreign currency funds deposited in foreign banks and foreign currency bills that concretize bank deposit claims constitute foreign exchange, mainly including bank drafts, checks, bank deposits, etc. -the usual concept of foreign exchange.
The main body of narrow foreign exchange is the foreign exchange bank, and narrow foreign exchange refers to the means of payment expressed in foreign currency for international settlement, which is generally carried out through the foreign exchange bank.