Settlement of foreign exchange refers to the behavior that the owner of foreign exchange income sells his foreign exchange income to the designated foreign exchange bank, and the designated foreign exchange bank pays the equivalent local currency at a certain exchange rate. There are many forms of foreign exchange settlement, such as compulsory foreign exchange settlement, willingness foreign exchange settlement and quota foreign exchange settlement. Compulsory foreign exchange settlement means that all foreign exchange income must be sold to designated foreign exchange banks, and foreign exchange is not allowed to be retained; Willingness to settle foreign exchange means that foreign exchange income can be sold to designated foreign exchange banks or left in foreign exchange accounts, and the owner of foreign exchange income decides whether to settle foreign exchange; The limit of foreign exchange settlement means that foreign exchange income cannot be settled within the quota approved by the state, and those exceeding the limit must be sold to designated foreign exchange banks. At present, China mainly implements the compulsory settlement system, and some enterprises are approved to implement the quota settlement system; Implement a system of willing foreign exchange settlement for domestic residents.

The sale of foreign exchange refers to the behavior of designated foreign exchange banks selling foreign exchange to foreign exchange users and collecting the equivalent RMB at the RMB exchange rate on the transaction date.