What is foreign exchange settlement and sale?
Foreign exchange settlement and sale is a general term for the settlement and sale of foreign exchange. Bank foreign exchange settlement and sales refers to the settlement and sales of foreign exchange conducted by banks for their clients and themselves, including forward foreign exchange settlement and sales performance and option exercise data, but excluding interbank foreign exchange market transaction data. The time point for statistics on bank foreign exchange settlement and sales is when the exchange of RMB and foreign exchange occurs.
Foreign exchange settlement refers to the act of the owner of foreign exchange income selling his foreign exchange income to a designated foreign exchange bank, and the designated foreign exchange bank paying an equivalent amount of local currency at a certain exchange rate.
Selling foreign exchange, also known as "selling of foreign exchange", refers to the act of a designated foreign exchange bank selling foreign exchange to a foreign exchange user and collecting an equivalent amount of RMB based on the RMB exchange rate on the date the transaction occurs.
What is the difference between foreign exchange settlement and foreign exchange sale?
1. Different concepts: Foreign exchange settlement is the act of an enterprise or individual buying and selling foreign exchange according to the exchange rate. Selling foreign exchange is the act of using domestic currency to purchase the required currency from a designated foreign exchange bank.
2. Different usage methods: The settlement of exchange shall be submitted to the bank for negotiation and settlement procedures within the validity period of the documents stipulated in the letter of credit. The sale of foreign exchange requires payment at a designated foreign exchange bank with valid commercial documents corresponding to the payment method and the listed valid vouchers.
3. Different methods: The foreign exchange settlement method is the method in which the consignor of export goods or its agent collects and settles foreign exchange through a bank. The sale of foreign exchange is first paid based on the payment list submitted by the user and then verified afterwards.
The main businesses that require the authenticity of foreign exchange sales to be reviewed by the State Administration of Foreign Exchange are:
Business 1:
Any advance payment exceeding 15% of the total contract amount and the equivalent of US$100,000 under the import item;
Business 2:
Under the export item, any implicit commission exceeding 2% of the total contract amount and any explicit commission exceeding 5% and exceeding the equivalent of US$10,000 for export commission payments;
Business three:
Foreign exchange payment for transit trade is paid first and received later;
Business 4:
Domestic institutions withdraw foreign currency cash in a single transaction exceeding the equivalent of USD 10,000;
Business Five:
Various special foreign exchange sales, etc.
This is the end of the knowledge about foreign exchange settlement and sale in this issue. If you want to get more information about foreign exchange settlement and sale, please pay attention and we will continue to answer your questions~
