Shunhui is characterized by the transfer of settlement tools in line with the movement direction of funds, from the payer (debt) to the payee (creditor's rights).
For foreign exchange banks, under the reverse exchange mode, customers sell bills to banks, which is equivalent to banks paying local currency and buying foreign exchange. After accepting the collection entrustment of the payee, the foreign exchange bank shall notify its foreign branches or correspondent banks to collect a certain amount of foreign currency from the payer at the exchange rate of the day and deposit it in its foreign exchange account opened in a foreign bank.
Extended data:
According to the different forms of credit under the reverse foreign exchange mode, it is divided into:
1, collection
Collection is a settlement method in which creditors (exporters) draw drafts on foreign debtors (importers) and entrust local foreign exchange banks to collect money from debtors through their foreign branches or correspondent banks.
2. Letter of credit
A written certificate issued by the bank to the exporter (seller) at the request of the importer (buyer) to ensure the payment responsibility of the goods. In the letter of credit, the bank authorizes the exporter to draw a draft drawn on the bank or its designated bank, attach the shipping documents as required, and collect the payment at the designated place on schedule under the conditions stipulated in the letter of credit.
Baidu Encyclopedia-Shunhui
Baidu Encyclopedia-Reverse Exchange