Can current account foreign exchange earnings be sold to financial institutions?

According to the relevant laws of our country, there are certain conditions for foreign exchange transactions. Only financial institutions approved by relevant departments can engage in the purchase and sale of foreign exchange and must accept the supervision of the supervisory and management departments. So, can current account foreign exchange income be sold to financial institutions? Below, the editor of Legal Savior Network will provide readers with relevant answers.

Can current account foreign exchange earnings be sold to financial institutions

According to my country’s relevant regulations According to the provisions of the law, foreign exchange earnings from current accounts may be retained or sold to financial institutions engaged in foreign exchange settlement and sales business in accordance with relevant national regulations.

"Regulations of the People's Republic of China on Foreign Exchange Administration"

Article 12 Current Account Foreign Exchange Receipts Payments should have a real and legitimate transaction basis. Financial institutions engaged in the business of settlement and sale of foreign exchange shall, in accordance with the provisions of the foreign exchange administration department of the State Council, conduct a reasonable review of the authenticity of transaction documents and their consistency with foreign exchange receipts and payments.

The foreign exchange administration authorities have the right to supervise and inspect the matters specified in the preceding paragraph.

Article 13 Foreign exchange earnings from the current account may be retained or sold to financial institutions engaged in foreign exchange settlement and foreign exchange sales in accordance with relevant national regulations.

The reasons for the emergence of the foreign exchange market

1. Trade and investment

With the development of international trade, businessmen from various countries are conducting transactions Sometimes, different currencies need to be exchanged. For example, a merchant needs to pay in one Currency when importing goods and needs to receive another currency when exporting goods. This way when settling accounts they charge different currencies. As a result, they need to convert part of their currency into currency that can be used to purchase goods.

2. Hedging

Due to fluctuations in exchange rates between different currencies, the company converts assets When using local currency, you may suffer certain risks. When foreign assets denominated in foreign currencies areWhen the value is stable over a period of time, if the exchange rate changes, a gain or loss will occur when the value of the asset is converted into domestic currency. Companies can hedge against this potential gain or loss. Foreign exchange transactions just offset the gains and losses on foreign currency assets caused by changes in exchange rates.

3. Speculation

The exchange rate between two currencies will change with the exchange rate between currencies. Changes due to changes in supply and demand. Traders can make a profit by buying a currency at one rate and selling it at another, more favorable rate.

The foreign exchange market fluctuates frequently and with large amplitude. At present, it is not new to see a rise or fall of 2% to 3% in one day, but it is precisely such ups and downs that create more good opportunities for investors, so it attracts more and more investors to join this ranks.

The above knowledge is the editor’s answer to relevant legal issues. According to the relevant laws of our country, foreign exchange income from current accounts can be retained or sold in accordance with relevant national regulations. To financial institutions engaged in foreign exchange settlement and sales business. If you need legal help, readers are welcome to go to the Legal Savior Network for legal consultation.