Foreign exchange accounts are freely convertible accounts opened by domestic institutions, Chinese-funded institutions, individual foreign trade operators and individual industrial and commercial households in designated foreign exchange banks. It plays a key role in foreign exchange transactions, specifically:

Foreign exchange account is a tool for receiving and managing foreign exchange funds, which provides a platform for import and export enterprises to centrally manage foreign exchange funds and facilitates cross-border remittance and settlement operations.

Through foreign exchange accounts, enterprises can retain foreign exchange funds for foreign exchange payments when necessary. This is especially important for export enterprises, because they need to ensure that they can receive the payment in time in order to continue their operations.

Foreign exchange accounts also provide enterprises with more exchange rate risk management tools. For example, enterprises can use the foreign exchange market to hedge and reduce the impact of exchange rate fluctuations on enterprises.

Generally speaking, foreign exchange accounts play a key role in export settlement, providing enterprises with convenient cross-border fund management tools and helping enterprises to better cope with exchange rate risks.