Since 1 994 65438+1October1,China's foreign exchange management system has undergone major reforms: the exchange rate has been consolidated and a single and managed floating exchange rate system based on market supply and demand has been implemented; Cancel the retention and settlement of foreign exchange, and implement the bank settlement and sale system. Enterprises and individuals sell foreign exchange to banks according to regulations, and banks enter the inter-bank foreign exchange market for transactions.

On April 4th, 1994 China foreign exchange trading system was put into operation, and a unified and standardized inter-bank foreign exchange market was formally established. The inter-bank foreign exchange market (hereinafter referred to as the "foreign exchange market") mainly provides services for designated foreign exchange banks to make up for the surplus and deficiency of foreign exchange settlement and sale positions and their liquidation. The designated foreign exchange bank is the main trading entity, and the foreign exchange administration department implements upper and lower limit management on the turnover position of bank settlement and sale of foreign exchange. For the part that exceeds or falls below the limit, banks can sell or supplement it through the interbank market.

1 99665438+February1,China announced the realization of RMB current account convertibility.

On July 2, 2005, China reformed the RMB exchange rate formation mechanism and implemented a managed floating exchange rate system based on market supply and demand and with reference to a basket of currencies.

By the end of 2007, there were 268 members in the inter-bank foreign exchange market (spot market) in China, including 139 foreign-funded financial institutions, 126 Chinese-funded financial institutions and 3 Chinese-funded enterprises. Trading in the foreign exchange market is becoming more and more standardized, the trading volume and scope are gradually expanding, and the market development speed is accelerating.