Other financial institutions engaged in the business specified in the preceding paragraph shall be approved by the State Administration of Foreign Exchange. Article 3 Foreign exchange transactions mentioned in these Provisions refer to transactions between various freely convertible currencies. Article 4 Customers who entrust China Bank or other financial institutions approved by the State Administration of Foreign Exchange (hereinafter referred to as designated financial institutions) to buy and sell spot and forward foreign exchange must be approved by the State Administration of Foreign Exchange or its branches, except for the following two cases:
(1) Specialized banks, financial institutions and foreign-invested enterprises that are allowed to engage in foreign exchange business can use their own or self-raised foreign exchange funds to buy and sell spot or forward foreign exchange in the international financial market, or they can entrust designated financial institutions to buy and sell on their behalf.
(2) Customers other than those mentioned in the preceding paragraph who borrow cash and accept foreign exchange donations in China and are approved to open accounts in domestic financial institutions to store cash may entrust designated financial institutions to buy and sell spot or forward foreign exchange according to foreign trade contracts or other economic agreements. Article 5 Spot and forward foreign exchange transactions must adhere to the principle of voluntariness. Article 6 Designated financial institutions shall buy and sell spot and forward foreign exchange on behalf of their clients in accordance with trade contracts or other economic agreements signed with them, except financial institutions and foreign-invested enterprises that handle foreign exchange business on their behalf. Article 7 When a customer entrusts a designated financial institution to handle spot and forward foreign exchange transactions, the customer shall provide a performance guarantee. The performance bond can be mortgaged with foreign exchange quota or paid in cash in advance.
If the foreign exchange quota is used for mortgage guarantee, the equivalent RMB guarantee issued by the bank of deposit must be provided at the same time.
If the advance cash performance bond is formed in advance with the foreign exchange quota, it is limited to the formation of US dollars. Article 8 When handling forward foreign exchange transactions, a customer shall submit an application form and a copy of the transaction contract or economic agreement to the local foreign exchange administration department in accordance with the provisions of Article 6. After the approval of the foreign exchange administration department, the customer shall entrust a designated financial institution approved by the foreign exchange administration department to purchase forward foreign exchange. Article 9 Where the foreign exchange quota is used for settlement of foreign exchange and payment of performance bond in advance, the foreign exchange administration department shall date, stamp and deduct the foreign exchange quota on the Notice of Payment of Foreign Exchange Quota issued by customers. Customers in the same city must buy US dollars within three working days from the date of endorsement (seven working days for customers in different places) and deposit them in the "special deposit for margin" account of the designated financial institution.
Where the foreign exchange quota is mortgaged, the foreign exchange administration department shall transfer the foreign exchange quota used by the customer to the foreign exchange quota account of the designated financial institution.
Entrusted option business can only be mortgaged with foreign exchange quota, but the option insurance premium to be paid at the time of transaction can be converted into cash in advance. Article 10 When a designated financial institution handles spot and forward foreign exchange transactions, any customer who uses the foreign exchange quota to settle foreign exchange in advance and pays the performance bond for forward foreign exchange transactions in advance must conduct accounting through the "special deposit for deposit" account. However, if the customer uses the original cash advance performance bond for foreign exchange trading, it will still pass the "deposit received" account. Article 11 If the import payment of foreign exchange is made later than the delivery date and the foreign exchange quota is used to form cash in advance, the designated financial institution shall restore the currency position obtained from delivery to the "special deposit for margin" account for temporary storage; Where the original cash exchange is used, the designated financial institution shall deposit the currency position obtained from the delivery into the "deposit received" account. Article 12 The State Administration of Foreign Exchange shall be responsible for the interpretation of these Provisions. Thirteenth these Provisions shall come into force as of the date of promulgation.