4 thoughts on “What is the difference between foreign exchange and foreign currency”

  1. The definition of foreign exchange for the International Monetary Fund (IMF) is: "Foreign exchange is a currency administrative authorities (central banks, monetary management agencies, foreign exchange level funds and the Ministry of Finance) in the form The claims that can be used in the international revenue and expenditure deficit. Among them, it includes bonds that are not circulating in the market by central banks and intergovernmental agreements, regardless of whether it is expressed in debt country currency or debt -owned currency. "

    According to the definition of IMF, my country has made more clear regulations on foreign exchange. Article 2 of the "Interim Regulations on the Management of Foreign Exchange Management of the People's Republic of China" is as follows:
    Foreign exchange refers to 1. Foreign currency, including banknotes, coins, etc.; 2. Foreign currency securities, including government bonds, national treasury bonds, corporate bonds , Stocks, interest tickets, etc.; 3. Foreign currency payment vouchers, including bills, bank deposits vouchers, post and telecommunications savings vouchers; 4. Other foreign exchange funds.
    Foreign currency refers to foreign currencies.

    The use of foreign exchange and foreign currencies:

    It use of foreign exchange (1) promoting the development of international economy and trade. Use foreign exchange to settle international debt and debt, which can not only save the cost of transporting cash, reduce risks, shorten the payment time, and accelerate the turnover of funds. More importantly, the use of this kind of credit tools can expand international credit exchanges, broaden financing channels , Promote the development of international economic and trade. (2) Regardless of international funds. The imbalance of world economic development has led to imbalanced funds. In some countries, the funds are relatively large, and some countries have a serious shortage of funds. Objectively, there is a need for the shortage of funds to adjust the funds. And foreign exchange as international payment methods. Through international credit and investment channels, the balance of funds can promote the balanced development of the economy of various countries. (3) Foreign exchange is an important part of a country's international reserves, and it is also the main payment method for settlement of international debt. Like the national gold reserves, as a national reserve asset, it can be used to settle debts when the international revenue and expenditure deficit occurs.

    . As for the use of foreign currency, it is much simpler. In layman's terms, it is to pay for money, that is, currency exchange.

  2. Foreign exchange is a payment voucher for foreign currency for international settlement, including: foreign currency, foreign currency deposits, foreign currency securities, foreign currency payment vouchers. Foreign currency is foreign currency.

  3. Foreign exchange is a distribution country, and it is not possible to take it out directly
    The foreign currency exists in the country, you can take it out directly.

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