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For a long time, foreign exchange, stocks and other financial products have dominated the international financial market for a long time. Foreign exchange, as a long history of financial products, in broad sense, refers to all foreign assets owned by a country. Refers to the flow of money between countries, and the exchange of a country's currency into another country's currency, in order to settle the international creditor's rights and debts of a specific business activities. Is actually the monetary authorities (central bank, the monetary authority and foreign exchange stabilization fund and the Ministry of Finance) in bank deposits, treasury bills, short-term government bonds and other forms of ownership can be used in the international balance of payments deficit debt.


Foreign exchange for the country's economic development has a crucial influence, including: promoting the development of international economy and trade; regulating their international capital; is an important part of a country's international reserves, the main means of payment and settlement of international debt. Foreign exchange can be divided according to different standards:
Divided by restrictions, they are classified as freely convertible foreign exchange, limited convertible foreign exchange and recorded foreign exchange.
The free exchange of foreign currency in the international settlement with, in the international financial market can be traded freely, can be used to pay debts, and can be freely convertible currencies of other countries in international finance. Such as dollars, Hong Kong dollars, Canadian dollars and so on.
Limited convertible foreign exchange means foreign exchange which cannot be freely exchanged into other currencies or made payable to a third country without the approval of the issuing country. The International Monetary Fund provides that all currencies that are limited to international payments and funds transfers are limited convertible currencies. More than half of the world's currency belongs to a limited convertible currency, including the renminbi.
For foreign exchange, or foreign exchange or bilateral foreign exchange, it refers to the foreign exchange on the designated bank account of the two sides, and can not be exchanged into other currencies, nor can it be paid to a third country.
They are classified into trade, foreign exchange, non tradable foreign exchange and financial foreign exchange according to their sources and uses.
Trade foreign exchange, also known as physical trade, foreign exchange, means foreign exchange derived from or used for import and export trade, that is, an international means of payment resulting from the international circulation of commodities.


Non trade foreign exchange refers to all foreign trade foreign exchange outside, that does not come from import or export trade for the foreign exchange, such as labor exchange, remittances and donated foreign exchange etc..
Finance, foreign trade and foreign exchange, foreign trade, foreign exchange is a financial asset, such as interbank foreign exchange trading, neither from the visible trade or invisible trade, nor for the visible trade, but for a variety of currency positions of management and mercy).


Along with the foreign exchange market is constantly expanding and the number of transactions rising, foreign exchange has become an important way for people to finance and investment, a detailed understanding of foreign knowledge, familiar with foreign exchange transaction process can help you better foreign exchange transactions, foreign exchange gains bring you additional investment value).
In a narrow sense, foreign currencies, which are generally accepted by foreign countries, can be used in international debt and debt settlement. The exchange must have three characteristics: affordability (must be in foreign currency assets), availability (must be able to get compensation in foreign debt) and changeability (must be freely convertible foreign currency assets for other means of payment).

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