• What are the general knowledge of foreign exchange management

    read:2023/2/26 15:14:04

    What is the common sense of forextradingaccountstype forextradingaccountsregister management? When speculating in foreign exchange requires a certain amount of foreign exchange management common sense, these management common sense on their own investment has a great impact on the success of many investors are because of a better grasp of foreign exchange management common sense Chinas December 1, 1996 accepted the International Monetary Fund Article VIII, to achieve the convertibility of the current account of the RMB, all legitimate, there is a real demforex trading accounts for transactions with the current account of foreign exchange can be external However, this does not mean that domestic enterprises and individuals can purchase foreign exchange at will, we still carry out authenticity audit of current account foreign exchange receipts and payments according to international practice, that is to say, domestic institutions and individuals using foreign exchange under the current account need to hold the required valid documents to the designated foreign exchange banks or foreign exchange bureaus for audit before they can purchase foreign exchange at banks or make external payments from their foreign exchange accounts. The purpose is to prevent the capital account from being mixed with the current account, to combat illegal capital flows and illegal criminal activities such as foreign exchange hedging and fraud, to maintain the order of the foreign exchange market and to protect the right of residents to make legitimate foreign exchange payments and receipts. Will it have an impact on normal import and export activities?  At present, there are still more serious illegal activities such as foreign exchange hedging, foreign exchange evasion, illegal elements through forged customs declarations, approvals and other documents to fraudulently purchase foreign exchange, by overstating the import price or underreporting the export price of foreign exchange will be retained outside the country, affecting the normal foreign exchange revenue and expenditure activities of society. In order to supervise enterprises in the export of goods after the timely and full recovery of payment, import payment after the timely and full receipt of goods, plugging the loophole of import and export collection and payment of foreign exchange evasion, China implemented in 1991 and 1994, respectively, the export receipt of foreign exchange underwriting system and import payment underwriting system export receipt of foreign exchange underwriting system refers to the export of goods, by the foreign exchange administration of the corresponding receipt of foreign exchange underwriting import payment underwriting refers to the import payment after the corresponding arrival of goods underwriting From years of practice, import and export underwriting is Chinas post-facto supervision of trade receipt and payment of foreign exchange The verification of import and export receipts and payments does not hinder the original order of normal import and export, and will not cause serious impact on normal import and export activities.  Capital account convertibility refers to the removal of exchange restrictions on capital outflows and inflows. The frequent occurrence of financial crises in emerging markets has repeatedly shown that immature capital account liberalization may have disastrous consequences. In the long run, as the domestic market mechanism, banking system, financial regulation and control instruments are gradually improved and perfected, China will actively create conditions to steadily promote capital account convertibility, and then achieve full convertibility of the RMB, which is a watery, gradual process and an important one to promote Chinas economic integration into the mainstream of the world economy. Why do I need to register my foreign cashback forex with the Foreign Exchange Bureau after raising it? Does the registration of foreign debts mean that the state guarantees the repayment?  A: The approval and registration of foreign debt management is an important part of Chinas foreign debt management policy, but also to maintain a reasonable foreign debt structure and scale, to prevent the risk of foreign debt PoweredbyRunman.cn According to the provisions of foreign debt statistics monitoring, all domestic institutions (including foreign-invested enterprises) need to apply for foreign debt registration at the Bureau of Foreign Exchange after external borrowing. The State Administration of Foreign Exchange and its branches perform the functions of supervision and statistical monitoring of foreign debt registration in accordance with the law But the registered foreign debt does not mean that the state guarantees the repayment According to the "Guarantee Law of the Peoples Republic of China", except for sovereign debt approved by the State Council, the relevant departments and local governments may not provide guarantees and disguised guarantees Foreign exchange bureau of domestic institutions for foreign borrowing approval and registration, mainly to confirm that domestic institutions The Measures for the Borrowing of International Commercial Loans by Domestic Institutions clearly stipulates that the borrowing of international commercial loans and the issuance of foreign currency bonds by domestic institutions shall be approved by the Bureau of Foreign Exchange, and that international commercial loan agreements and debt issuance agreements signed without approval are invalid. The foreign exchange bureau and the Chinese government have no guarantee responsibility for the approved foreign debt. Why China should implement the balance of payments statistical reporting system? It is one of the main sources of information for macroeconomic decision-making under the conditions of open economy. Since the reform and opening up, with the continuous expansion of Chinas foreign relations and the increasing marketization of economic life, China started to compile the balance of payments on a trial basis in 1980, published the balance of payments to the public in 1985, and started to implement the Balance of Payments Statistical Declaration Measures in 1996. In 1996, we started to implement the "Measures for Statistical Declaration of Balance of Payments", and in 1996, on the basis of indirect declaration of balance of payments by financial institutions, in 1997, we introduced four direct declarations of direct investment, securities investment, financial institutions foreign assets and gains and losses, and exchange, etc. Now we have established a complete and scientific system of declaration and statistics of balance of payments. Have you understood these good general knowledge of foreign exchange management? Make an effort to learn these basic general knowledge of foreign exchange management, so that their investment will be of great help from now on, work hard!