It refers to the behavior that financial institutions approved to operate pay overseas the foreign exchange purchased by them from their accounts or after examining the valid certificates and commercial documents provided by foreign exchange users and individuals in accordance with the relevant regulations on foreign exchange sales and payment.
Payment from a foreign exchange account shall be made on the date specified in the relevant settlement method or contract, and no payment shall be made in advance.
Foreign exchange is not allowed to be purchased in advance except for foreign exchange and letter of credit/guarantee margin for principal and interest repayment.
Without the approval of the SAFE office, no foreign exchange shall be purchased or paid from the foreign exchange account.
A domestic entity shall open a foreign exchange account with a bank in the place of its registration that conducts foreign exchange business, and conduct foreign exchange purchase and payment in accordance with relevant regulations.
