Forward foreign exchange is also called forward foreign exchange. Foreign exchange delivered by forward payment in the foreign exchange market. There is a gap between the contract time and the performance time of this foreign exchange transaction, and its term is usually 3 months, 6 months or 9 months. ?

Cash refers to various payment vouchers expressed in foreign currency, which can be circulated and transferred in the international market and can be freely converted into other countries' currencies. Such as US dollar, British pound, Swiss franc, German mark and other currencies of major western countries.

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According to Article 8 of the Agreement of the International Monetary Fund, as a general obligation of member countries, a country's currency must meet three conditions before it can become a cash exchange:

1. There are no restrictions on the current account (trade and non-trade payments) and capital transfer in China's balance of payments.

2. Don't take discriminatory monetary measures or multi-currency exchange rates.

3. At the request of another member state, it is obliged to buy back the remaining domestic currency in the current account of the other party at any time.

A freely convertible currency is widely used in international exchange settlement, freely traded in the international financial market, and freely convertible into the currencies of other countries. In international trade, the import and export trade settled in these freely convertible currencies is called spot trade.