Difference between foreign exchange purchase and foreign exchange settlement

1. Buying foreign exchange means buying foreign currency, and settling foreign exchange means buying foreign currency to go abroad;

2. Foreign exchange purchases are mostly for personal use, and foreign exchange settlement mostly occurs in enterprises;

3. Purchase of foreign exchange is generally to apply to the bank for purchase of foreign exchange when traveling abroad or studying abroad, and settlement of foreign exchange is the behavior of buyers and sellers to settle the payment through the bank after the completion of import and export transactions;

4. To apply for purchasing foreign exchange, you only need to declare the purpose of purchasing foreign exchange orally and go to the bank with your identification information. However, after the import and export trade, enterprises are required to correctly prepare various documents in accordance with the provisions of the letter of credit, and submit them to the bank for negotiation and settlement procedures within the prescribed period of validity.

5. It should also be noted that for individuals, regardless of foreign exchange purchase or settlement, the amount of foreign exchange purchased per person per year is $50,000. If it exceeds the amount, relevant certification materials need to be provided.

1. Buying cash means changing local currency cash into foreign currency cash, and the handling fee is slightly higher than buying foreign currency, which can be reflected in the daily foreign exchange selling price (the price that the bank sells to customers) and the cash selling price issued by China Bank. In China, our functional currency is RMB. When we need to pay foreign currency after a foreign currency transaction, it is called buying foreign exchange and paying in foreign currency. Buying foreign exchange 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 The converted foreign currency is still in the account or bank card, and no cash has been withdrawn. However, after 20 14, China opened the policy of foreign currency exchange, and individuals and institutions that need to purchase foreign exchange can buy foreign currency through regular foreign currency exchange companies and get cash. Therefore, purchasing foreign exchange is no longer a simple banking business.

2. Application conditions for purchasing foreign exchange: Domestic residents who need to travel abroad, visit relatives, visit, seek medical treatment, study abroad, train, work and settle down can apply for purchasing foreign exchange in the bank. According to the latest policy, each person has an annual quota of US$ 50,000, and can purchase foreign exchange at one time or by stages within the annual quota. Citizens only need to verbally declare the purpose of purchasing foreign exchange, and they can directly handle it with their real identification. If it is necessary to purchase foreign exchange in excess, it is necessary to provide relevant authenticity certification materials for the excess part, and the total amount of foreign exchange purchased shall not exceed the amount marked on the certification materials.