Inter-bank foreign exchange market: Domestic financial institutions (including Chinese and foreign-funded banks and non-bank financial institutions) that have been approved by the People's Bank of China and the State Administration of Foreign Exchange to engage in foreign exchange business pass the China Foreign Exchange Trading Center (hereinafter The inter-bank foreign exchange trading system (referred to as the "Trading Center") is a market for transactions between RMB and foreign exchange.

Foreign exchange: Foreign exchange has both dynamic and static meanings.

The dynamic meaning of foreign exchange refers to the international exchange behavior and process of converting one country's currency into another country's currency, that is, a specialized business activity used to settle international claims and debt relationships.

The static meaning of foreign exchange refers to financial assets expressed in foreign currencies that can be used for external payments. Article 3 of the "Regulations of the People's Republic of China on Foreign Exchange Administration" stipulates: "Foreign exchange as mentioned in these Regulations refers to the following means of payment and assets expressed in foreign currencies that can be used for international settlements: 1. Foreign currency, including banknotes and coins ; 2. Foreign currency payment certificates, including bills, bank deposit certificates, postal savings certificates, etc.; 3. Foreign currency securities, including government bonds, corporate bonds, stocks, etc.; 4. Special Drawing Rights; 5. Other foreign exchange assets. ”

Exchange rate: It is the conversion ratio when currencies of various countries are exchanged with each other, that is, the price of one country's currency unit expressed in another country's currency unit.

Benchmark exchange rate: The People's Bank of China announces the central parity rate of RMB against the US dollar, Japanese yen and Hong Kong dollar in the inter-bank foreign exchange market every day. The central parity rate is between designated foreign exchange banks and between designated foreign exchange banks and their customers. The benchmark exchange rate for RMB trading against US dollars, Japanese yen, and Hong Kong dollars.

Bank foreign exchange quotation: Each designated foreign exchange bank uses the benchmark exchange rate of RMB against the U.S. dollar announced by the People's Bank of China as the basis, and based on the international foreign exchange market conditions, calculates on its own the day's RMB against the U.S. dollar, Japanese yen, and Hong Kong dollar. The central parity rate of a freely convertible currency. Designated foreign exchange banks can independently set the foreign exchange buying price, foreign exchange selling price, cash buying price and cash selling price for each listed currency within the exchange rate fluctuation range prescribed by the People's Bank of China. These listed prices are the bank's foreign exchange quoted prices.

Direct pricing method: Calculate how much of that country’s currency is payable based on a certain unit of foreign currency.

Indirect pricing method: Use a certain unit of local currency as the basis to calculate how much foreign currency is receivable.

Foreign exchange market: a market for currency trading and exchange. It is a place for foreign exchange trading activities composed of foreign exchange demanders, foreign exchange suppliers, and buying and selling intermediaries.

Exchange rate system: refers to a series of arrangements or regulations made by a country’s monetary authority on the basic way in which the country’s exchange rate changes. Such as stipulating the external value of the country's currency, stipulating the fluctuation range of the exchange rate, stipulating the exchange rate relationship between the country's currency and other currencies, stipulating the ways to influence and intervene in exchange rate changes, etc. Traditionally, exchange rate systems are divided into fixed exchange rate systems and floating exchange rate systems; after 1973, exchange rate systems became increasingly diversified, and the International Monetary Fund reclassified exchange rate systems into pegged exchange rate systems and flexible exchange rate systems. The latter Including floating exchange rate system.

Foreign exchange settlement and sales business: The bank’s foreign exchange settlement and sales system began with the reform of the foreign exchange management system in 1994. Starting from January 1, 1994, the state abolished various foreign exchange retention, transfer and quota management systems, and implemented a bank foreign exchange settlement and foreign exchange sales system for the foreign exchange receipts and payments of domestic institutions under the current account. Under the bank foreign exchange settlement and sales system, foreign exchange settlement refers to the act in which the owner of foreign exchange income sells foreign exchange to a designated foreign exchange bank, and the designated foreign exchange bank pays an equivalent amount in RMB based on the RMB exchange rate on the date of the transaction; foreign exchange sales refers to the behavior of the designated foreign exchange bank. The act of selling foreign exchange to foreign exchange users and collecting the equivalent amount of RMB based on the RMB exchange rate on the date of the transaction.

Forward foreign exchange settlement and sales business: refers to the negotiation and signing of forward foreign exchange settlement and sales contracts between designated foreign exchange banks and domestic institutions, agreeing on the foreign exchange currency, amount, exchange rate and term for future foreign exchange settlement or sales; expiration When foreign exchange income or expenditure occurs, foreign exchange settlement or foreign exchange sales shall be handled in accordance with the currency, amount, and exchange rate specified in the forward foreign exchange settlement and sales contract.

Comprehensive position of foreign exchange settlement and sales: refers to the foreign exchange position formed by transactions between RMB and foreign currencies held by a designated foreign exchange bank (hereinafter referred to as the bank). The bank handles the settlement and sales to customers in compliance with foreign exchange management regulations. Foreign exchange business, its own foreign exchange settlement and sales business and participation in inter-bank foreign exchange market transactions.

Proprietary business (proprietary trading): The China Foreign Exchange Trading Center Market Transaction Rules (Interim) issued by the China Foreign Exchange Trading Center on January 14, 1995 stipulates that proprietary business refers to members’ own foreign exchange transactions. Foreign exchange transactions for the normal conduct of business.

Agency business (agency transaction): The China Foreign Exchange Trading Center Market Transaction Rules (Interim) issued by the China Foreign Exchange Trading Center on January 14, 1995 stipulates that agency business refers to members engaged in providing brokerage services to enterprises. Foreign exchange transactions

Spot foreign exchange transactions: Spot foreign exchange transactions are foreign exchange transactions in which two different currencies are exchanged at an exchange rate agreed upon by both parties and liquidated after one to two business days.

Forward foreign exchange transactions: refers to the forward foreign exchange sales contract signed by the foreign exchange buyer and seller in advance, which stipulates the currency, amount, exchange rate and future delivery time. Foreign exchange transactions for receipt, payment and delivery are handled at the agreed exchange rate.

Foreign currency buying and selling business: refers to arrangements that facilitate transactions and clearing between domestic financial institutions in foreign currencies through electronic trading and clearing platforms in the inter-bank foreign exchange market. The foreign currency trading system launched this time is a system that provides trading and clearing for spot transactions of foreign currencies against foreign currencies, and does not involve transactions between RMB and foreign currencies.

Financial Derivatives: International Swaps and Derivatives Association (ISDA): "Derivatives are bilateral contracts about swap cash flows and designed to transfer risk for traders. When the contract expires, the trader's The amount owed to the other party is determined by the price of the underlying commodity, security or index. ”

A derivative is a financial contract whose value depends on one or more underlying assets or indices. Basic types of contracts include. : Forwards, futures, swaps and options. Derivatives also include structured financial products that have one or more of the characteristics of forwards, futures, swaps (swaps) and options.

Inquiry transaction: Inquiry transaction refers to foreign exchange trading entities that have a credit relationship with each other. They directly inquire and negotiate on the currency, amount, exchange rate and future delivery time of the currency to be traded, and reach an agreement. The transaction method after confirming the transaction.

Auction trading: The trading system sorts the buying quotes and selling quotes separately, and matches the transactions according to the principles of price priority and time priority.

Inter-bank foreign exchange market maker: approved by the State Administration of Foreign Exchange, inter-bank foreign exchange that undertakes the obligation to continuously provide buying and selling prices to market members when conducting RMB and foreign currency transactions in the China inter-bank foreign exchange market. Market members.

Financial institutions: refers to various types of Chinese-funded financial institutions and foreign-funded financial institutions (except insurance companies) established in accordance with the law in China.

Non-bank financial institutions: refers to Chinese-funded trust and investment companies, financial leasing companies, finance companies, securities companies, insurance companies and companies established with the approval of the People's Bank of China and registered in the People's Republic of China. Other financial companies.

Foreign-funded financial institutions: refer to the following financial institutions that have been approved to be established and operate in China in accordance with the relevant laws and regulations of the People's Republic of China and the People's Republic of China: banks with foreign capital whose head offices are in China; Branches of foreign banks in China; banks jointly operated by foreign financial institutions and Chinese financial institutions in China; financial companies with foreign capital whose head offices are in China; joint ventures between foreign financial institutions and Chinese financial institutions in China operating financial company.

Overseas branches of Chinese-funded financial institutions: refer to non-independent legal person branches established overseas by Chinese-funded financial institutions in accordance with local laws.

Members of the inter-bank spot foreign exchange market: banks, non-bank financial institutions or banks that meet the relevant conditions, submit a written application to the trading center and obtain approval, and can engage in spot transactions in the trading system provided by the trading center. Non-financial businesses.

Balance of payments: refers to various economic transactions between an economy (usually a country or region) and other economies in the world within a certain period of time. The economic transactions are between residents and non-residents. Economic transactions, as flows, reflect the creation, transfer, exchange, assignment or reduction of economic value, including current account transactions, capital and financial account transactions and changes in international reserve assets.

Current account: refers to the flow of real resources, including imported and exported goods, imported and exported services, external receivables and payables, and exchanges with other countries or regions in the absence of equivalent returns. Regular transfers of economic value provided or received between

Capital and financial items: refers to capital transfers under capital items, non-production/non-financial asset transactions, and all other financial items that cause changes in an economy’s external assets and liabilities. Capital transfer refers to transfer projects involving changes in the ownership of fixed assets and reduction or exemption of claims and debts, etc., which lead to changes in the asset stock of one or both parties to the transaction. It mainly includes the transfer of fixed assets, debt reduction, immigration transfer, investment donation, etc. Non-production/non-financial asset transactions refer to the acquisition and abandonment of non-production tangible assets (land and underground assets) and intangible assets (patents, copyrights, trademarks, distribution rights, etc.). Financial projects specifically include direct investment, securities investment and other investment projects.

Interbank foreign exchange trading system: refers to the electronic system provided by the trading center (including the China Foreign Exchange Trading Center Shanghai Headquarters, Beijing Backup Center and other branch centers) for foreign exchange transactions and fund clearing among members.

Foreign exchange transaction: refers to the spot purchase and sale between RMB and foreign exchange.

Members: refer to domestic financial institutions that are approved by the CFETS and are allowed to engage in foreign exchange transactions within the trading system.

Spot foreign exchange transaction: Spot foreign exchange transaction is a foreign exchange transaction in which two different currencies are exchanged at an exchange rate agreed upon by both parties and settled after one to two business days.

Forward foreign exchange transactions: refers to the forward foreign exchange sales contract signed by the foreign exchange buyer and seller in advance, which stipulates the currency, amount, exchange rate and future delivery time. Foreign exchange transactions for receipt, payment and delivery are handled at the agreed exchange rate.

Inquiry transaction: Inquiry transaction refers to foreign exchange trading entities that have a credit relationship with each other. They directly inquire and negotiate on the currency, amount, exchange rate and future delivery time of the currency to be traded, and reach an agreement. The transaction method after confirming the transaction.

Centralized bidding: Centralized bidding foreign exchange trading refers to the way in which multiple trading entities in the market conduct foreign exchange transactions simultaneously through a certain trading system or platform and according to certain bidding rules. For example, the current trading method in China's inter-bank foreign exchange market is based on the bidding rules of time priority and price priority.

Concentrated credit granting: The organizer of the foreign exchange market, as one party, grants each trading entity participating in the transaction a certain trading quota based on the amount of trading funds owned by each trading entity as the credit standard. Each trading entity also grants A certain size of transaction limit for the central clearing department.

Bilateral credit: In the foreign exchange market, two trading entities directly grant each other a certain transaction credit limit.

Bilateral clearing: After the trading entities in the market conclude a foreign exchange transaction, they do not go through a certain clearing agency, but directly transfer funds to each other's designated accounts.