Basic Accounting Knowledge: Foreign Exchange
Foreign exchange has two meanings: dynamic and static.
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, to repay international creditor's rights. debt A specialized business operation of a relationship.
The static meaning of foreign exchange refers to the financial assets that can be used for external payment in foreign currencies.
The third provision of the regulations on foreign exchange control of the People's Republic of China stipulates: "foreign exchange" as mentioned in these Regulations refers to the following means of payment and assets that can be used for international settlement in foreign currencies: (1) foreign currencies, including banknotes and coins, (two) foreign currency payment vouchers, including bills, bank deposit certificates, postal savings certificates, and so on; (three) foreign currency securities, including government bonds,
company
Bonds, stocks, etc.; (four) special drawing rights; (five) others.
foreign exchange
Assets. "
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