Foreign exchange settlement refers to the business in which designated foreign exchange banks buy foreign exchange from enterprises, institutions or individuals at a prescribed exchange rate and pay the corresponding RMB. The exchange rate used for foreign exchange settlement: the banknote purchase price is used for cash exchange settlement, and the foreign exchange purchase price is used for spot exchange settlement. Compared with cash, the bank can save a certain amount of cash custody and overseas transportation costs, so its price is higher

1. Different settlement methods

Spot exchange settlement: based on the current settlement based on exchange rate.

Cash foreign exchange settlement: It means direct settlement with cash in hand, and you will bear certain exchange rate changes.

2. Different carriers

Cash settlement: it is settled with specific and real foreign banknotes and coins.

Spot exchange settlement: It is the foreign exchange on the books. When it is transferred out of the country, there is no physical transfer, it can be remitted directly, it is just a transfer on the account.

3. The cash received is different

Cash exchange: When withdrawing cash, since the remittance party has already borne the transportation fee, the same amount of cash can be withdrawn by cash exchange.

Cash: When withdrawing cash, the exchange rate at the time must be settled, and the cash received is exchanged at the exchange rate at the time of withdrawal.

Extended information:

When customers want to transfer cash out of the country, they can carry specific and real foreign banknotes and coins. However, when the customer "remits", since the cash is in physical form, the bank must transport it abroad, and the transportation costs will be borne by the customer, which is manifested as "selling cash and buying foreign currency" (the customer sells cash and buys foreign currency). cash). It can be seen that cash cannot be converted into spot exchange of the same amount. If the cash is to be converted into spot exchange, the customer will suffer a certain loss in the amount of foreign exchange.

Spot exchange transfer refers to various payment certificates expressed in foreign currencies, which can be circulated and transferred in the international market and can be freely converted into foreign currencies of other countries. Such as the U.S. dollar, pound, Swiss franc, German mark and other currencies of major Western countries.

Baidu Encyclopedia-Cash exchange rate