Foreign currency is foreign exchange, and the difference between foreign exchange and foreign curren

Incorrect, foreign currency is the currency in foreign circulation, and the concept of foreign exchange has a double meaning, that is, there is a distinction between dynamic and static. The static concept of foreign exchange is further divided into the concept of foreign exchange in the narrow sense and the concept of foreign exchange in the broad sense. Foreign exchange in the narrow sense refers to various means of payment expressed in foreign currencies, which are generally accepted by all countries and can be used for international settlement of claims and debts.

It must have three characteristics: payability (assets that must be expressed in foreign currency), accessibility (claims that must be compensated abroad) and fungibility (assets in a foreign currency that can be freely convertible into other means of payment).

OK describes it this way, and it is divided into narrow and broad senses.

Broadly true.

In a narrow sense, foreign exchange is a currency obtained by the free trading of commodities, which generally refers to the trading of bulk international commodities.

It has the characteristics of free exchange, free trade, and international use.

There are many types of foreign currencies, and we collectively refer to foreign currencies as those other than RMB.

However, in international commodity trading, the currencies (or foreign currencies) with foreign exchange characteristics are only US dollars, euros, francs, pounds, etc. For example, we can say that the Afghan currency is a foreign currency, not foreign exchange.

In my opinion, foreign exchange is a means of payment expressed in foreign currency that can be used for international settlements. Foreign currencies are not necessarily foreign exchange. Whether a foreign inclination can be called foreign currency depends on whether it is freely convertible, or whether it can return to its country, and can be deposited without restriction into the ordinary account of any commercial bank in that country, and can be transferred when necessary.

Only then can this foreign currency be called foreign exchange.

At present, the foreign exchange traded in the international market mainly includes the US dollar, the euro, the Japanese yen, the British pound, the Swiss franc, the Canadian dollar, the Australian dollar and the New Zealand dollar.

There are two conditions that must be met for a currency to be considered as foreign exchange, one is acceptability and the other is that it is freely convertible. So not every currency can be Forex. For example, the renminbi is not foreign exchange because the renminbi is not freely convertible.

Foreign exchange is a means of payment expressed in foreign currency that can be used for international settlements. A foreign currency, on the other hand, is a currency that expresses value abroad. The concepts are all different.

Definitely a misconception!

In addition to the conceptual differences, foreign currencies and foreign exchange are also different in terms of use. Foreign exchange includes foreign currency, and foreign currency is a kind of foreign exchange, and the two of them are inclusive.

The main uses of foreign exchange are as follows:

Payment instruments and credit instruments for international** and clearing.

It can be used to adjust the surplus of international funds.

It can serve as an important international reserve resource for a country. The main use of foreign currency is for the payment of goods and currency exchange.

Foreign exchange includes: foreign currencies, including banknotes and coinage. Foreign currency payment certificates, including bills, deposit certificates, savings certificates, etc.

Foreign currencies have a value, including bonds, corporate bonds, etc. Other foreign currency assets.