Since December 1, 1996, my country has realized the convertibility of RMB under the current account, but still strictly controls the exchange between RMB and foreign currencies under the capital account. According to my country's "Foreign Exchange Management Regulations" and "Measures for the Administration of Foreign Exchange Settlement, Sales and Payment by Banks" and other regulations, my country's current supervision of banks' foreign exchange settlement and sales includes the following aspects.

1. Supervision of foreign exchange accounts (domestic)

The supervision of foreign exchange accounts specifically includes:

① Current account and capital account accounts are used separately and cannot be used together;

②Domestic institutions can only open foreign exchange accounts under the current account if they meet specific requirements, and must obtain approval from the Administration of Foreign Exchange;

③Foreign-invested enterprises must open foreign exchange accounts under the current account with Apply with the Administration of Foreign Exchange, and the account balance should be controlled within the maximum balance approved by the Administration of Foreign Exchange;

④ Domestic institutions and institutions in China are generally not allowed to open foreign currency cash accounts; individuals and people coming to China are generally not allowed to open foreign currency cash accounts. Opening of foreign exchange accounts for settlement purposes is not permitted.

2. Supervision of foreign exchange collection and settlement

①After all local foreign exchange swap centers were closed on December 1, 1998, all institutions and individuals can only handle foreign exchange settlement at designated foreign exchange banks;

②Domestic institutions The foreign exchange income under the current account must be transferred back to the country and must not be stored abroad without authorization;

③ Unless domestic institutions meet special conditions and are approved by the Administration of Foreign Exchange, their foreign exchange income under the current account must handle foreign exchange settlement. Foreign investors Investment enterprises must handle foreign exchange settlement for current account foreign exchange income exceeding the maximum limit approved by the Administration of Foreign Exchange;

④ Domestic foreign exchange loans other than export bills and international commercial loans from Chinese-funded enterprise borrowers are not allowed to be settled. The foreign exchange received by domestic institutions from selling real estate and other assets overseas must be settled. Foreign exchange under other capital items shall not be settled without the approval of the State Administration of Foreign Exchange.

3. Supervision on the purchase and payment of foreign exchange

① With a few exceptions, domestic institutions that use foreign exchange for trade and non-trade operations must present valid commercial documents and valid certificates corresponding to the payment method from their foreign exchange Account or go to a designated foreign exchange bank to pay; domestic institutions repay the interest on foreign exchange loans of domestic Chinese-funded financial institutions, and pay from their foreign exchange accounts or to Foreign exchange is paid by designated banks.

②For foreign investors of foreign-invested enterprises to remit profits and dividends after paying taxes in accordance with the law, they must present the board of directors' distribution resolution and the tax department's tax payment certificate, and pay from their foreign exchange account or cash it at a designated foreign exchange bank.

③ To repay the principal of foreign exchange loans to domestic Chinese-funded financial institutions, domestic institutions must hold the "Foreign Exchange (Transfer) Loan Registration Certificate", the loan contract and the principal repayment notice from the creditor institution, and pay from their foreign exchange account or Go to a designated foreign exchange bank to redeem; for foreign exchange under other capital items, apply to the Administration of Foreign Exchange with valid certificates, and pay from your foreign exchange account or go to a designated foreign exchange bank with the approval document from the Administration of Foreign Exchange.

④For foreign-invested enterprises to increase, transfer or otherwise dispose of their foreign exchange capital, they shall, based on the resolution of the board of directors and upon approval by the Administration of Foreign Exchange, pay from their foreign exchange accounts or sell foreign exchange issued by the Administration of Foreign Exchange. The notice must be redeemed at a designated foreign exchange bank; the domestic investment of foreign exchange capital of investment-oriented foreign-invested enterprises and the domestic capital increase or reinvestment of profits earned by foreign parties must be handled with the approval document from the Administration of Foreign Exchange. my country Foreign Exchange Trading Center was officially put into operation on April 4, 1994. It is headquartered in Shanghai and has branch centers in 19 cities including Beijing and Tianjin.

my country's inter-bank foreign exchange market refers to the exchanges between domestic financial institutions (including banks, non-bank financial institutions and foreign financial institutions) that are approved by the State Administration of Foreign Exchange to engage in foreign exchange business through the China Foreign Exchange Trading Center. The trading market between RMB and foreign currencies. The foreign exchange market is supervised by the State Administration of Foreign Exchange authorized by the People's Bank of China. The Trading Center is an independent accounting, non-profit corporate legal person under the leadership of the People's Bank of China. The Trading Center is under the supervision of the State Administration of Foreign Exchange and is responsible for the organization and management of the foreign exchange market. Daily business management.

The trading center provides trading systems, clearing systems and foreign exchange market information services for foreign exchange transactions in the foreign exchange market. According to the transaction method of price priority and time priority, the foreign exchange market adopts the operation methods of separate bridge reporting, transaction matching and centralized clearing.

The trading center implements a membership system, and only members can participate in foreign exchange market transactions. The General Meeting of Members is the highest authority of the trading center and is held once a year. The trading center establishes a board of directors, which is a permanent body during the intersession of the general meeting. The board of directors shall have at least 9 members, consisting of non-member directors (not less than 1/3) and member directors. Each term of the Board of Directors is two years, and member directors shall not be re-elected for more than two terms. Member directors are elected by the general meeting of members, while non-member directors are nominated by the State Administration of Foreign Exchange and elected by the general meeting of members. The Board of Directors has 1 chairman, who is a non-member director, and is nominated by the State Administration of Foreign Exchange and elected by the Board of Directors; 3 vice-chairmen, including 1 non-member director and 2 member directors, are elected by the Board of Directors.

Members of the Trading Center are financial institutions and their branches approved by the State Administration of Foreign Exchange to engage in foreign exchange business. They apply for membership to the Trading Center and become members after being reviewed and approved by the Trading Center. The People's Bank of China also participates in market transactions as a member of the trading center. Traders selected by members must be trained by the trading center and issued a license before they can participate in trading. Traders accept the management of the trading center.

Foreign exchange transactions between members of the trading center must be conducted through the trading center, and foreign exchange transactions by non-members must be conducted through members with agency qualifications. Matters such as market transaction methods, trading hours, transaction currencies and varieties, and clearing methods must be reported to the State Administration of Foreign Exchange for approval. The trading center and member units should ensure that the cleared foreign exchange and RMB funds are delivered to the account within the specified time. Supervision of exchange rate is the management and supervision of the exchange rate system and exchange rate level, which mainly includes:

First, direct control of exchange rate, in which the government or central bank of a country formulates, adjusts and announces the exchange rate, that is, implements The so-called official exchange rate. And the official exchange rate becomes the exchange rate actually used by the market, which makes the exchange rate level meet the needs of official policies.

The second is to indirectly adjust the market exchange rate. Regulators do not directly intervene in the exchange rate, but let the exchange rate spontaneously adjust the supply and demand in the foreign exchange market. When the market exchange rate fluctuates violently, the central bank uses the foreign exchange stabilization fund to buy Or sell foreign exchange or local currency to stabilize the market exchange rate. In addition, through the use of monetary policy, the central bank mainly uses interest rate leverage to affect the exchange rate.

The third is to implement a multiple exchange rate system. Through foreign exchange controls, a country has more than two expressions of its currency exchange rate. Specific forms include: implementing differential exchange rates, stipulating different exchange rates for imports and exports; adopting different exchange rates for trade activities and financial activities, or stipulating different exchange rates for different commodities; another example is the implementation of a foreign exchange transfer certificate system. It stipulates that exporters can obtain a foreign exchange transfer certificate when settling foreign exchange. This transfer certificate can be sold in the market, and the proceeds from the sale are subsidies to exporters. Since the importer has to purchase the transfer certificate, the cost increases, which is essentially a special compound exchange rate. form.

my country’s supervision of foreign exchange rates requires designated foreign exchange banks to determine foreign exchange purchases and sales for customers based on the central parity rate of the RMB exchange rate announced daily by the People’s Bank of China and the prescribed buying and selling spread in the bank’s foreign exchange settlement and sales market. prices, and handle foreign exchange settlement and sales. In the inter-bank foreign exchange market, foreign exchange transactions should be conducted within the RMB market exchange rate for the day announced by the People's Bank of China and the maximum daily price fluctuation range specified.