Foreign exchange custody means that traders who lack time or have poor profitability hand over their foreign exchange accounts to professional companies or professional analysts for custody. The trustee will charge a certain transaction commission as a reward.
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.
Limited freely convertible foreign exchange refers to foreign exchange that cannot be freely converted into other currencies or paid to a third country without the approval of the issuing country. According to the regulations of the International Monetary Fund, all currencies with certain restrictions on international current payments and capital transfer are restricted freely convertible currencies. More than half of the national currencies in the world are limited convertible currencies, including RMB.
Bookkeeping foreign exchange, also known as clearing foreign exchange or bilateral foreign exchange, refers to foreign exchange deposited in bank accounts designated by both parties and cannot be converted into other currencies or paid to third countries.
According to source use: it is divided into trade foreign exchange, non-trade foreign exchange and financial foreign exchange.
Trade foreign exchange, also known as physical trade foreign exchange, refers to foreign exchange derived or used in import and export trade, that is, international payment means formed by international commodity circulation.
Non-trade foreign exchange refers to all foreign exchange except trade foreign exchange, that is, all foreign exchange that is not derived from or used for import and export trade, such as labor foreign exchange, remittance, donation foreign exchange, etc.
Different from trade foreign exchange and non-trade foreign exchange, financial foreign exchange belongs to a kind of financial asset foreign exchange, such as inter-bank trading foreign exchange, which is neither derived from tangible trade nor intangible trade, nor used for tangible trade, but used for the management and manipulation of various currency positions.
According to the market trend: it is divided into hard foreign exchange and soft foreign exchange, or strong currency and weak currency.
Foreign exchange transactions are the exchange of one foreign currency into another. Quotation is the exchange rate, which is usually expressed by the conversion ratio between two currencies, such as USD/JPY and GBP/JPY. The exchange rate is the first currency (as the base currency) and the second currency (as the pricing currency) that represents the price.
In foreign exchange quotations, we often see English words, with three English letters indicating the name of the currency. USD, EUR, JPY and GBP, a standard international foreign exchange unit is 654.38+ million base currency, especially some currencies that are not commonly used in English, such as NZD NZD and AUD, which need to be understood.
Listed foreign exchange: note that not all trading quotations can be published. The following foreign currencies can be listed and traded in the foreign exchange market, such as USD, EUR and JPY. , listed by the People's Bank of China.
The exchange rate is also called "foreign exchange market or exchange rate". The ratio of one country's currency to another is the price of another currency expressed in one currency. Because of the different names and values of currencies in the world, one country's currency should set an exchange rate for other countries' currencies, that is, the exchange rate.