Broadly speaking: foreign currency assets owned by the state. It refers to the currency flow between countries and the specialized commercial activities of exchanging one country's currency into another country's currency to settle international creditor's rights and debts.
In fact, monetary management (central bank, monetary authorities, foreign exchange funds and the Ministry of Finance) takes the form of bank deposits, treasury bills, long-term government bonds and other forms of debt, which can be used for balance. Pay the deficit.
Narrow sense: expressed in foreign currency, which is generally accepted by all countries and can be used to solve international creditor's rights and debts. Must have three characteristics: affordability (assets that must be expressed in foreign currency), availability (compensation must be made abroad) and convertibility (assets that must be freely convertible into other foreign currencies). Payment).
Used for source purposes: divided into trade foreign exchange, non-trade foreign exchange and financial foreign exchange.
Trade foreign exchange, also known as visible trade foreign exchange, refers to foreign exchange from or used in import and export trade, that is, the international circulation of goods formed through international payment means.
Non-trade foreign exchange refers to all foreign exchange except foreign exchange trade, that is, all foreign exchange that is not from or used for import and export trade, such as foreign exchange, remittance, foreign exchange donation, etc.
Different from trade foreign exchange and non-trade foreign exchange, financial foreign exchange is a kind of foreign exchange of financial assets, such as foreign exchange transactions between banks. It does not come from tangible trade or intangible trade, nor from the use of tangible trade or tangible trade, but from the management and manipulation of various currency positions. According to the market trend, it can be divided into hard foreign exchange and soft foreign exchange, or called strong currency and weak currency.
Extended data:
China foreign currency classification
According to control
(1) cash, the four kinds of foreign exchange referred to in China's Provisional Regulations on Foreign Exchange Management are all cash, which can be used as a means of payment for international settlement immediately;
(2) purchase of foreign exchange, that is, the foreign exchange index approved by the state can be used. If you want to change the index into cash, you must use RMB to buy cash from the designated bank within the index limit according to the exchange rate announced by the State Administration of Foreign Exchange. Technically, it's called purchasing foreign exchange. You must use the function of purchasing foreign exchange according to the specified purpose.
one's nature
dollar
(1) Trade foreign exchange, which comes from import and export payment and auxiliary expenses related to import and export trade, such as foreign exchange used for freight, insurance, sample fees, publicity and promotion fees, etc.;
(2) Non-trade foreign exchange, foreign exchange receipts and payments other than import and export trade, such as remittance, tourism, ports, civil aviation, insurance, banking, foreign contracted projects, etc.
Other classifications
(1) foreign exchange retention, in order to encourage the enthusiasm of enterprises to earn foreign exchange, after the foreign exchange earned by enterprises is sold to the state, a certain proportion of foreign exchange (quota) will be returned to the foreign exchange earning units and their competent departments or places for use according to state regulations;
(2) adjusting foreign exchange, that is, adjusting foreign exchange used by each other through the foreign exchange adjustment center;
(three) free foreign exchange, that is, foreign exchange accumulated by enterprises approved by the state;
(4) Operating foreign exchange that can be offset by income with the approval of the State Administration of Foreign Exchange;
(5) The revolving foreign exchange quota and one-time-use foreign exchange quota refer to the foreign exchange quota that has not been used up within the prescribed time limit and must be turned over at maturity, and the revolving foreign exchange quota can continue to be used after being used once;
⑥ Resident foreign exchange and non-resident foreign exchange, foreign exchange of domestic organs, armed forces, organizations, enterprises and institutions, as well as foreign exchange of China people, foreigners and stateless persons living in China belong to resident foreign exchange and foreign exchange of diplomatic institutions, consular institutions and commercial institutions in China.