Foreign exchange refers to the means of payment and assets that can be used for international settlement. According to China's foreign exchange management regulations, China's foreign exchange includes foreign currency, foreign exchange payment vouchers, foreign currency securities, special drawing rights, European currency units and other foreign currency assets. According to the different characteristics of currencies in international settlement, foreign exchange can be divided into free foreign exchange and bookkeeping foreign exchange.

Foreign exchange management, also known as foreign exchange control, refers to a management system in which a country imposes certain restrictions on foreign exchange transactions, loans, transfers, receipts and payments, international settlement, foreign exchange rates and foreign exchange markets in order to maintain the balance of international payments. Its purpose is to maintain the balance of international payments, limit capital outflow, prevent foreign exchange speculation and promote the healthy development of domestic economy.

According to the Regulations of People's Republic of China (PRC) on Foreign Exchange Control, China implements the system of statistical declaration of balance of payments, and all units and individuals with balance of payments must declare the balance of payments.

(B) China foreign exchange management system framework

China has been implementing foreign exchange control since the founding of the People's Republic of China. At the beginning of the founding of the People's Republic of China, based on the weak national strength and the severe international and domestic situation at that time, China implemented a strict foreign exchange management system. With the reform and opening up and the continuous development of economy, China has promulgated a series of new laws and regulations on foreign exchange management, and formed a relatively complete legal system on foreign exchange management, including other foreign exchange management laws and regulations, administrative regulations and other normative documents, which marks that China's foreign exchange management has entered a new era.

At present, the functional department of foreign exchange management in China is the State Administration of Foreign Exchange and its branches.

Two. Foreign exchange management of current account and capital account

China's foreign exchange receipts and payments are divided into current account foreign exchange and capital account foreign exchange, and different management measures are implemented respectively.