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What is the foreign exchange base point?
Usually abbreviated as "pips" (English), the smallest unit of exchange rate change is 1 basis point, that is, the change of the last number in the exchange rate, and each unit of change is called the change of a foreign exchange basis point.

Foreign exchange, called foreign currency in English, is a creditor's right held by monetary management organs (central bank, monetary management institution, foreign exchange stabilization fund and Ministry of Finance) in the form of bank deposits, treasury bonds and long-term and short-term government securities. Can be used when the balance of payments is in deficit.

Including foreign currency, foreign currency deposits, foreign currency securities (treasury bonds, treasury bonds, corporate bonds, stocks, etc.). ) and foreign currency payment vouchers (bills, bank deposit vouchers, postal savings vouchers, etc.). ).

By 20 15, China ranks first in the foreign exchange reserves of governments around the world. The United States, Japan, Germany and other countries have a large number of private foreign exchange reserves, and the overall foreign exchange reserves of the country are much higher than that of China.

broad sense

All foreign currency assets owned by a country. It refers to the flow of money between countries and a specialized commercial activity of exchanging one country's currency for another country's currency to pay off international creditor's rights and debts. In fact, it is the creditor's rights held by the monetary management authorities (central bank, monetary management institutions, foreign exchange stabilization fund and Ministry of Finance) in the form of bank deposits, treasury bonds, long-term and short-term treasury bonds, etc. Can be used when the balance of payments is in deficit.

narrow sense

Various payment methods expressed in foreign currency, which are generally accepted by all countries and can be used for international settlement of creditor's rights and debts. It must have three characteristics: affordability (assets that must be expressed in foreign currency), availability (claims that can be compensated abroad) and convertibility (foreign currency assets that can be freely converted into other means of payment).

Promote the development of international economy and trade.

Adjust the surplus and deficiency of international funds.

It is an important part of a country's international reserves and the main means of payment to pay off international debts.

Universal classification

According to the degree of restriction: it is divided into freely convertible foreign exchange, limited freely convertible foreign exchange and bookkeeping foreign exchange.

Freely convertible foreign exchange is the most used foreign exchange in international settlement, which can be bought and sold freely in the international financial market, can be used to pay off creditor's rights and debts in international finance, and can be freely converted into currencies of other countries. Such as US dollars, Hong Kong dollars and Canadian dollars.