2. Promote the development of international trade and capital flow. Foreign exchange is the product of international economic exchanges. Without foreign exchange, the international turnover and utilization of funds cannot be accelerated, and international economic, trade and financial exchanges will be hindered. Paying off international creditor's rights and debts with foreign exchange can not only save the cost of transporting cash and avoid transportation risks, but also avoid capital backlog and accelerate capital turnover, thus promoting the development of international commodity exchange and capital flow.
3. Promote the adjustment of international capital supply and demand.
1. According to the degree of restriction, it is divided into freely convertible foreign exchange, limited freely convertible foreign exchange and bookkeeping foreign exchange.
1. Freely convertible foreign exchange refers to the foreign exchange that is most used in international settlement, can be bought and sold freely in the international financial market, can be used to pay off creditor's rights and debts in international finance, and can be freely converted into currencies of other countries. Such as US dollars, Hong Kong dollars and Canadian dollars.
2. Limited convertible foreign exchange refers to foreign exchange that cannot be freely converted into other currencies or paid to a third country without the approval of the issuing country. According to the regulations of the International Monetary Fund, all currencies with certain restrictions on international current payments and capital transfer are restricted freely convertible currencies. More than half of the national currencies in the world are limited convertible currencies, including RMB.
3. Bookkeeping foreign exchange, also known as clearing foreign exchange or bilateral foreign exchange, refers to foreign exchange deposited in bank accounts designated by both parties and cannot be converted into other currencies or paid to third countries.
Source and use: divided into trade foreign exchange, non-trade foreign exchange and financial foreign exchange.
1. Trade foreign exchange, also known as physical trade foreign exchange, refers to foreign exchange derived or used in import and export trade, that is, international payment means formed by international commodity circulation.
2. Non-trade foreign exchange refers to all foreign exchange except trade foreign exchange, that is, all foreign exchange that is not derived from or used for import and export trade, such as labor service foreign exchange, remittance and donation foreign exchange.
3. Financial foreign exchange is different from trade foreign exchange and non-trade foreign exchange, and belongs to a kind of financial asset foreign exchange, such as inter-bank trading foreign exchange, which is neither derived from tangible trade or intangible trade, nor used for tangible trade, but used for the management and manipulation of various currency positions.
Three, according to the market trend: divided into hard foreign exchange and soft foreign exchange, or strong currency and weak currency.