1, different expressions of foreign exchange is;
Foreign notes are cash.
If the foreign exchange commission is in cash, it becomes foreign currency.
Because foreign banknotes belong to paper money, the bank is in charge of keeping when depositing in the bank, cannot remit to abroad directly, MUST CHANGE them into foreign exchange first.
2, different commissions for lower;
The handling fee is higher than foreign banknotes.
In other words, the foreign exchange fee is much lower than the foreign banknote fee.
The two can be exchanged through the spread, but the international exchange must use foreign currency.
3. Different Means of Payment Foreign exchange refers to various means of payment, including bank certificates of deposit, cheques, bills of exchange, etc.
The payment method of foreign banknotes is paper money payment, that is, cash payment.
Foreign notes generally refer to notes and coins or bank deposits in the form of notes and coins.
Colloquially, foreign exchange is electronic money, foreign notes are cash.
Foreign exchange is brought into China by remittance, which does not need to be kept and carried, and can be remitted abroad.
Foreign notes are paper money, deposited in the bank bank is responsible for the preservation, can not be directly remitted to the foreign exchange, first into foreign exchange.
One dollar sinks to the home, the money is actually a bank in the United States put it (such as the bank of China in the United States citigroup) on open account, if you want to return from domestic remit to foreign countries, for Banks is relatively easy, as long as the transfer from the payer’s bank account to the payee’s bank account.
If the recipient of the money sent to China wants to raise cash at home, the bank actually uses its own cash on hand to advance the payment.
In the same way, when cash wants to be sent out, the bank actually deposits the cash it receives in its Treasury, using its own offshore deposits to send money for the client.
And the cash in the Treasury will not generate income, and there will be storage fees.
That’s why the exchange rate is different between remittances and banknotes.
