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What is the meaning of foreign exchange possession

2023/2/26 17:58:55  Classification:   Participation: 6  

For forex traders the word best forex rebate rebate rebatesinforexforextrading bestforexrebate is relatively unfamiliar, but in the macro side of the news, sometimes mention the concept of foreign exchange account then foreign exchange account is what it means? Today to introduce you in detail  foreign exchange account refers to a countrys central cashback forex in order to acquire foreign exchange assets rebatemeaninginforex the need to put the corresponding amount of domestic currency in our country, for example, because the yuan is a non-free convertible currency, and foreign capital into our country need to be converted into yuan to enter circulation, so the country in order to exchange foreign capital need to invest a lot of money in other words, the country needs to In other words, the country needs to use its own currency to buy foreign exchange, which will increase the money supply, thus forming what we call todays foreign exchange account  Speaking of foreign exchange account we have to mention the foreign exchange reserves, foreign exchange reserves believe that we are not unfamiliar, so what is the connection between the two? In fact, the foreign exchange account in a countrys central bank to buy foreign exchange to form the local currency, the purchase of foreign exchange assets constitute what we often call foreign exchange reserves  It should be noted that, because the bank settlement system by the bank counter settlement market and the interbank foreign exchange market two layers of market system, so the actual use of foreign exchange account has two layers of meaning, a layer of meaning is the central bank in the bank-led The other meaning is the bank counter market and the interbank foreign exchange market two market including the central bank and commercial banks, including the entire banking system to acquire foreign exchange formed by the real economy of the RMB funds investment  The first layer of meaning is the specific performance: the central bank to purchase foreign exchange and then form the foreign exchange reserves we said before, and finally put into the base currency The second layer of meaning is: the entire banking system to purchase foreign exchange, and then the formation of the entire societys foreign exchange reserves and finally the formation of social capital investment  about what is the meaning of foreign exchange account, I believe that through todays explanation you have a preliminary understanding

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