The relevant provisions of local foreign exchange include: foreign exchange income provided for local exports and non-trade foreign exchange income such as remittances and tourism retained according to the proportion stipulated by the state. Local foreign exchange is mainly used to support the production of export commodities, develop local industrial and agricultural production and local tourism, and can also import a small amount of consumer goods.

Local foreign exchange is an indicator of the foreign exchange quota granted by the state to local governments, that is, the state grants local governments the right to use this quota of foreign exchange. In actual use, it needs to be purchased from China Bank in RMB. Foreign exchange transactions in the busiest places in the world are generally concentrated in financial institutions such as commercial banks. The purpose of buying and selling foreign exchange is to pursue profits. The way is to buy cheap and sell expensive, and earn the bid-ask difference.