China Foreign Exchange Trading Center is an independent accounting and non-profit enterprise legal person under the leadership of the Central Bank. The trading center implements the membership system. By the end of 1994, there were 303 members, including Chinese banks and their branches, foreign banks and other non-bank institutions. Among them, foreign banks can only be agents, not self-employed. The only way to buy and sell is spot trading, not forward and futures trading (we will know the difference between these trading methods in Chapter 3).

1994 65438+ 10 1 China reformed the foreign exchange management system, and the foreign exchange trading market is closer to the international standardized foreign exchange market in terms of structure, organizational form, trading methods and trading contents. China's foreign exchange trading market has the following characteristics:

First, the use of modern communication networks and computer networks to provide foreign exchange trading and clearing services for financial institutions. In terms of transaction methods and contents, online transactions are implemented. The foreign exchange market only conducts cash transactions between RMB and USD, RMB and Japanese yen, and RMB and Hong Kong dollar.

B, in terms of market structure, it can be divided into two levels: one is the transaction between customers and designated foreign exchange banks; Second, foreign exchange transactions between banks, including transactions between designated foreign exchange banks and transactions between designated foreign exchange banks and the central bank.

The basis for determining the market exchange rate is the supply and demand of the foreign exchange market. The People's Bank of China announces the benchmark exchange rate every day, and the designated foreign exchange banks determine the listed exchange rate within the prescribed floating range, and the floating range of the exchange rate is within (0.25%).

The People's Bank of China conducts macro-control and management of the foreign exchange market. The central bank mainly uses monetary policy to intervene.

In China, it is also worth noting that China's foreign exchange market has two major sectors, namely RMB-to-foreign exchange market and foreign currency-to-foreign currency market. Let's briefly introduce these two parts:

A. RMB versus foreign exchange market; Because this market involves RMB business, it has a great impact on the domestic economy and there are many trading restrictions. For example, at present, we can only engage in spot transactions of RMB against US dollars, Hong Kong dollars and Japanese yen; There are many trading restrictions.

B, foreign currency against foreign currency market; Participants include not only companies and enterprises, but also individual residents holding foreign exchange. The market development is relatively perfect. With the development of open economy, it is an inevitable trend for China's domestic foreign exchange market to integrate into the international foreign exchange market, and it is an inevitable trend for the two major sectors to merge into one.