Foreign exchange settlement is the abbreviation for foreign exchange settlement. Foreign exchange settlement refers to an act in which a company or individual settles foreign exchange purchases and foreign exchange sales at the exchange rate. Bank foreign exchange settlement means that an enterprise sells its foreign exchange income to a designated foreign exchange bank at the exchange rate of the day, and the bank collects foreign exchange and exchanges it in RMB for the enterprise.

However, the current foreign exchange settlement system has two characteristics:

One is the cancellation of foreign exchange retention and payment at the time of foreign exchange settlement, and cancellation of foreign exchange quota management

Second, the designated foreign exchange bank replaces the central bank for foreign exchange settlement, and the domestic currency funds required for foreign exchange settlement will be settled by the designated foreign exchange bank, and the central bank will no longer provide it.

Regardless of whether it is personal or corporate foreign exchange settlement, it must be handled at the corresponding bank.

The form of settlement

There are three main forms of foreign exchange settlement: compulsory foreign exchange settlement, willing foreign exchange settlement and limited foreign exchange settlement.

Compulsory foreign exchange settlement means that all foreign exchange income must be sold to designated foreign exchange banks, and foreign exchange is not allowed

The willingness to settle foreign exchange means that the foreign exchange income can be sold to the designated foreign exchange bank, or a foreign exchange account can be opened and retained. The foreign exchange income settlement is determined by the owner

The limit of foreign exchange settlement means that the foreign exchange income can not be settled within the amount approved by the state, and those exceeding the limit must be sold to the designated foreign exchange bank.

In my country, the compulsory foreign exchange settlement system was implemented in the past. After the promulgation of the new “Foreign Exchange Management Regulations” on August 1, 2008, my country currently implements the voluntary foreign exchange settlement system.

Settlement way

After the export goods are loaded, the import and export company should correctly prepare the documents (packing list, invoice, bill of lading, export certificate of origin, export settlement) and other documents in accordance with the provisions of the letter of credit, and submit them to the bank within the validity period specified in the letter of credit Handle foreign exchange settlement procedures through negotiation.

In addition to the use of letter of credit settlement, other payment methods generally include remittance, collection and letter of credit, among which remittances include wire transfer, draft transfer, mail transfer and other methods. Due to the rapid development of electronics, wire transfers are currently used for remittances. the way.

Expand the information

  1. Import and export professional companies, according to the needs of the import business, purchase foreign currencies from professional foreign exchange banks in their own currencies at the foreign exchange rates announced by the country to remit them abroad, or sell foreign currencies derived from exports at the listed prices and convert them into domestic currency , In foreign trade, it is called foreign exchange settlement.
  2. In addition to the settlement of foreign exchange by letter of credit, other payment methods generally include remittance and collection. Remittance includes wire transfer, draft transfer, mail transfer and other methods. Due to the rapid development of electronics, wire transfers are now the main method of remittance.
  3. The way of foreign exchange settlement is the way that the consignor of exported goods or his agent collects foreign exchange through the bank. The code of settlement method is divided into remittance, collection, letter of credit and others.
  4. my country’s foreign exchange quotations are regulated daily by the Bank of China, and foreign exchange management is also carried out by the Bank of China. The selling price is higher than the buying price, and the difference in between is the bank exchange fee, or exchange income.

Export settlement process:

  1. In general trade, after the bank receives the foreign remittance, if the domestic-funded enterprise does not have a foreign currency account, it will settle the exchange at the quoted price of the day and deposit the RMB into the company’s account. The bank will provide a water bill for exchange.
  2. There is no limit on the amount of foreign exchange settlement by banks, but foreign exchange declaration and verification are required. The online verification system for export receipts conducts foreign exchange verification.
  3. If the settlement is a wire transfer, there is no handling fee, because your exchange rate difference is already the bank’s profit. It is better to choose Bank of China, after all, there is more experience.
  4. Generally, it is better for domestic enterprises to entrust foreign trade companies to conduct import and export business, which can save a lot of troublesome procedures.