Cash refers to free transactions in the international financial market, also known as "free foreign exchange". Foreign exchange widely used in international settlement and payment and freely convertible into other countries' currencies. Countries that issue these currencies have relaxed foreign exchange control and control, some even basically abolished foreign exchange control, while others have implemented strict foreign exchange control, which prevents their currencies from being freely convertible into internationally used foreign currencies and stipulates that their currencies cannot be taken out of the country.
Simply put, cash refers to foreign currency bills remitted or brought in from abroad and transferred to personal bank accounts.
Cash is tangible foreign banknotes and coins.
Spot buying price: refers to the price at which banks buy foreign currency spot and customers sell foreign currency spot.
The buying price of cash refers to the price at which banks buy foreign currency cash and customers sell it.
Why is the bank's cash purchase price lower than the cash purchase price?
The buying price of cash refers to the exchange rate used by banks to buy foreign currency cash. Because banks have to bear higher costs after buying cash than buying cash. When you sell the cash to the bank, you sell your foreign exchange deposit in a foreign bank to the bank. This foreign exchange deposit was transferred from your name to the bank's name from the moment you sold it to the bank. As long as the bank does the corresponding accounting treatment, it can immediately get this foreign exchange deposit in a foreign bank and start calculating interest immediately.
If the bank buys cash, because the foreign currency cash can't circulate locally, it needs to be shipped abroad, not only can't get the deposit and interest immediately, but also have to pay the cost of keeping the cash. Only when the cash has accumulated to a sufficient amount can the bank transport these foreign currency cash abroad and deposit it in foreign banks. Banks can obtain foreign exchange deposits in foreign banks and start earning interest. The specific expenses that banks need to pay to exchange foreign currency cash include: cash management fee, transportation fee, insurance fee, packaging fee, etc. These expenses are reflected in the difference between the cash purchase price and the cash purchase price.
Selling price is the exchange rate used by banks to sell foreign exchange to customers or peers.
The benchmark price, also known as the middle price, is set by the bank according to the trading situation of various currencies in the international financial market. In China, the SAFE will release the benchmark prices of some currencies, such as US dollars and euros, and other currencies will be calculated by the banks themselves. If you want to change RMB into euros, use the selling price.
The benchmark price is only applicable to major currencies, such as USD, GBP, EUR, JPY and HKD. The central parity of the Bank is calculated by weighting the exchange rates of the corresponding currencies and major currencies on the basis of the benchmark price. The middle price of major currencies is its benchmark price.
Middle price: refers to the compromise between the foreign exchange prices bought and sold by banks, usually the price used by banks when clearing funds. That is, the middle price of foreign exchange for individuals or units to buy and sell foreign exchange.
Remarks: If RMB is converted into foreign currency, please refer to the "selling price"; If foreign currency is converted into RMB in cash, refer to the "cash purchase price"; If cash is converted into RMB, refer to the "cash purchase price".
What's the difference between settlement and purchase of foreign exchange?
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. In China, the system of compulsory settlement of foreign exchange was used in the past. After the promulgation of the new "Regulations on Foreign Exchange Control" in August 2008 1, at present, China implements the system of willing settlement of foreign exchange.
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.
Foreign exchange purchase
Application for foreign exchange purchase: Domestic residents who travel abroad, visit relatives, study abroad, seek medical treatment, study abroad, provide services, settle down, etc. can apply for foreign exchange purchase in the bank. According to the latest policy, each person has an annual quota of US$ 50,000, and can purchase foreign exchange at one time or by stages within the annual quota. Citizens only need to verbally declare the purpose of purchasing foreign exchange, and they can directly handle it with their real identification. If it is necessary to purchase foreign exchange in excess, it is necessary to provide relevant authenticity certification materials for the excess part, and the total amount of foreign exchange purchased shall not exceed the amount marked on the certification materials. Most commercial banks can provide private foreign exchange purchase service, but not all outlets of every bank can handle it. Citizens can consult through the customer service hotlines of various banks. What needs special reminder is that citizens should not exchange money in the hands of "yellow cattle". On the one hand, black market exchange is illegal, on the other hand, private exchange is often converted into counterfeit money, and security is not guaranteed. Buying Currency In China, the foreign exchange currencies that banks can buy are different. As far as banks are concerned, there are currently 17 currencies available for foreign exchange purchase: British pound, Hong Kong dollar, US dollar, Swiss franc, Singapore dollar, Swedish krona, Norwegian krona, Japanese yen, Danish krona, Canadian dollar, Australian dollar, euro, Philippine peso, Thai baht, Korean won, Macao pataca and new Taiwan dollar.