How does forward foreign exchange settlement and sales operate?

Forward foreign exchange settlement and sales business refers to the signing of a forward foreign exchange settlement and sales agreement between the customer and the bank, agreeing on the foreign exchange currency, amount, term and exchange rate for future foreign exchange settlement or sales. When it expires, the currency, amount, and exchange rate specified in the agreement will be used. Exchange rate settlement and sales business. Bank of China's forward foreign exchange settlement and sales business currencies include US dollars, Hong Kong dollars, Euros, Japanese yen, British pounds, Swiss francs, Canadian dollars, and Canadian dollars; terms include 7 days, 20 days, 1 month, 2 months, There are 14 term levels in total, from 3 months to 12 months. Transactions can be fixed-term transactions or optional transactions.

Application conditions for forward settlement and sale of foreign exchange

1. Under the current account, any foreign exchange settlement, sale and All foreign exchange receipts and payments that can handle foreign exchange settlement and sales according to the "Foreign Exchange Payment Management Regulations" can handle forward foreign exchange settlement and sales business. When the forward foreign exchange settlement and sale transaction matures and is delivered, the customer must provide all valid certificates required for the foreign exchange settlement and sale business.

2. Forward foreign exchange settlement and sales under the capital account are limited to the following aspects:

Repayment in progress - the bank’s own foreign exchange loans;

repay overseas loans registered with the State Administration of Foreign Exchange;

Foreign exchange receipts and payments from overseas direct investments registered with the Administration of Foreign Exchange;

Foreign exchange capital income of foreign-invested enterprises registered with the Administration of Foreign Exchange;

Foreign exchange income from overseas listings of domestic institutions registered with the State Administration of Foreign Exchange;

Other foreign exchange receipts and payments approved by the State Administration of Foreign Exchange.

Business process of forward foreign exchange settlement and sales

1. Apply for forward foreign exchange settlement and sales business Customers should open relevant accounts at Bank of China.

2. Sign a forward settlement/sales summary agreement. Customers who handle forward foreign exchange settlement and sales business need to sign the "Forward Foreign Exchange Settlement/Sales Summary Agreement" with Bank of China in duplicate, with the customer and the bank each holding one copy.

3. Entrust review. When customers apply for forward foreign exchange settlement and sales business, they need to fill in the "Forward Foreign Exchange Settlement/Foreign Exchange Sales Authorization Form" and submit it to Bank of China at the same time.Submit valid certificates required in accordance with the management regulations on settlement, sale and payment of foreign exchange; Bank of China will review them against the power of attorney and relevant certificates. The amount of forward foreign exchange settlement or foreign exchange sales entrusted by the customer shall not exceed the expected amount of foreign exchange collection and payment, and the transaction period shall also conform to the actual period of foreign exchange collection and payment.

4. The transaction is completed. After Bank of China confirms that the customer's entrustment is valid, the customer pays the corresponding deposit or deducts the corresponding credit limit; after the transaction is completed, Bank of China issues a "Forward Foreign Exchange Settlement/Foreign Exchange Sales Transaction Confirmation" to the customer.

5. Maturity date review and delivery. On the maturity date, Bank of China will review the valid certificates and/or commercial documents submitted by the customer and handle delivery with the customer in accordance with the relevant regulations on foreign exchange settlement, foreign exchange sales, and foreign exchange collection and payment management.

6. Exhibition period. If the customer is unable to deliver on time due to reasonable reasons, he or she may apply for an extension.

7. Breach of contract. If the customer fails to fully perform the contract, the bank has the right to proactively liquidate the unperformed transaction portion after the final delivery date.