Fund management refers to the control measures that a government authorizes the national financial management authority or other state organs to implement on foreign exchange payment, trading, lending, transfer and international settlement.
The management of foreign exchange funds is the core content of foreign exchange business management.
Including foreign currency cash management, foreign exchange income and expenditure management and management.
Strengthening the management of foreign exchange funds is an important part of the financial management of enterprises and also an important part of the foreign exchange management of the state.
Mainly reflected in: 1. Foreign currency cash management.
According to China’s foreign exchange control regulations, foreign currencies cannot be circulated and used in China. They can only be deposited in the Bank of China or other banks designated by the State Administration of Foreign Exchange. If enterprises use foreign currencies, they can convert them to banks for use.
2. Management of foreign exchange income and expenditure.
The foreign exchange income and expenditure of Chinese enterprises are an important aspect of the financial activities of enterprises, and also an organic component of the foreign exchange income and expenditure of the whole country.
3. Foreign exchange risk management.
The foreign currency risk of an enterprise refers to the increase or decrease in the value of its assets, liabilities, income and expenses due to the change in foreign exchange, which may result in loss or gain, but the result is uncertain.
Strengthening foreign exchange risk management can help enterprises avoid losses caused by exchange rate changes and increase earnings.
