What does purchasing foreign exchange mean?

In China, the local currency is the RMB. When foreign currency needs to be paid after a foreign currency transaction occurs, the act of using RMB to purchase foreign exchange is called foreign exchange purchase. It is a transfer transaction, which is to exchange the local currency in the account for foreign currency, which is equivalent to foreign exchange trading. The converted foreign currency is still in the account or bank card, and no cash has been withdrawn. But after 2014, China liberalized its foreign currency exchange policy. Individuals and institutions who need to purchase foreign exchange can purchase foreign currency through formal foreign exchange companies and obtain cash. Therefore, purchasing foreign exchange is no longer a pure banking business.