What do you mean by settlement?

Settlement of foreign exchange is the settlement of foreign exchange trading by enterprises or individuals according to the exchange rate. Its methods are: remittance, collection, letter of credit and others. The settlement of foreign exchange corresponds to the sale of foreign exchange, which refers to the sale of foreign exchange by individuals or enterprises. Settlement and sale of foreign exchange are generally carried out in banking institutions (which requires banking institutions to have a large amount of foreign exchange reserves), but not all banking outlets can carry out settlement and sale of foreign exchange.

What do you mean by settlement?

The difference between foreign exchange purchase and settlement:

1. Buying foreign exchange means buying foreign currency, and settlement means buying foreign currency and selling foreign currency;

2. Foreign exchange purchases are mostly for personal use, and foreign exchange settlement mostly occurs in enterprises;

3. Generally, purchasing foreign exchange is to apply to the bank for purchasing foreign exchange when traveling abroad or studying abroad, and settlement of foreign exchange is the behavior of buyers and sellers to settle the payment through the bank after the import and export transaction is completed;

4. To apply for purchasing foreign exchange, you only need to verbally declare the main purpose of purchasing foreign exchange and bring your identification materials to the bank. However, after the import and export trade, enterprises are required to prepare various documents reasonably according to the requirements of the letter of credit and submit them to the bank for negotiation and settlement of foreign exchange within a certain period of time.

5. For individuals, no matter whether they purchase foreign exchange or settle foreign exchange, the amount of foreign exchange purchased per person per year is 50,000 dollars. If it exceeds the quota, relevant certification materials need to be provided.