Capital business means that by using various financial instruments, especially various derivative financial instruments and their combinations, banks can assist their peers to maintain and increase the value of foreign exchange assets on the premise of controlling risks.
Foreign exchange fund business includes valet business, foreign exchange trading and valet business.
1. Foreign exchange transaction on behalf of customers foreign exchange transaction on behalf of customers belongs to the foreign exchange fund business, including :(1) spot, refers to the foreign exchange transaction that is delivered by the bank and the customer on the second working day after the transaction at the agreed exchange rate.
(2) Forward foreign exchange transactions refer to foreign exchange transactions that are delivered between the bank and the customer at the agreed exchange rate in the foreign exchange contract at the agreed time (a certain date after the second working day after the closing date).
(3) It refers to the foreign exchange transaction in which the customer entrusts the bank to buy currency A and sell currency B at the spot rate according to the exchange rate agreed between the bank and the customer, and then entrusts the bank to sell currency A and buy currency B at another exchange rate agreed upon in the future.
(4) It is a transaction in which the option buyer, after paying a certain amount of option premium, has the right to buy an agreed amount of a certain currency and sell another currency from the option seller at an agreed time in the future according to the agreed exchange rate.
2. RMB foreign Exchange trading RMB foreign exchange trading includes services and RMB foreign exchange swap business.
It means THAT the owner of foreign exchange income sells its foreign exchange income to the designated foreign exchange bank, and the designated foreign exchange bank pays the equivalent amount of RMB according to a certain exchange rate.
Foreign exchange sale refers to the act that designated foreign exchange banks sell foreign exchange to foreign exchange users and individuals and collect RMB at a certain exchange rate.
According to relevant regulations, financial institutions approved by the People’s Bank of China to handle foreign exchange settlement and sale business are called designated foreign exchange banks.
The designated foreign exchange banks shall, in accordance with the approved business scope, conduct foreign exchange settlement, foreign exchange sale, foreign exchange opening and foreign payment business for domestic institutions, individual residents, institutions in China and foreign nationals in China, and handle the statistics and declaration of international balance of payments.
At present, the business scope of foreign exchange settlement and sale has been expanded to all current accounts and part of capital and financial accounts.
Banks have different approaches to foreign exchange settlement and sale, mainly including :(1) spot settlement and sale refers to the bank’s handling of foreign exchange settlement or sale according to the listed exchange rate of the day.
(2) It refers to the forward foreign exchange settlement contract signed by the bank and the customer, which specifies the currency, amount, exchange rate and duration of the foreign exchange settlement or sale in the future;
When the customer’s foreign exchange income or expenditure is due, it shall settle or sell foreign exchange with the bank according to the currency, amount, time limit and exchange rate specified in the forward foreign exchange settlement and sale contract.
Renminbi currency swap business it is to point to a bank sign the renminbi and foreign currency swaps with the customer, at the same time the stipulated amount consistent, buying and selling in the opposite direction, two different delivery date of the yuan to the same foreign currency transactions, and settlement date in two transactions according to the currency, amount specified swaps, the exchange rate of foreign exchange settlement and sale business.
3. Foreign exchange financing banks on behalf of customers can use various financial instruments, especially various derivative financial instruments and their combinations, to help customers maintain and increase the value of foreign exchange assets under the premise of controlling risks.
