The difference between virtual currency and foreign exchange

8. 1 The essential difference is that the foreign exchange market is the place or trading network for foreign exchange trading; The money market refers to the short-term capital lending market with a deadline of one year or less, which is an integral part of the international capital market. 2 The foreign exchange market is composed of spot trading market, forward trading market and adjustment trading market. The money market is composed of three parts: bank short-term credit market, short-term securities market and discount market. 3 In the foreign exchange market, a foreign exchange transaction inevitably involves two kinds of currencies; In the money market, generally, a loan business only involves one currency, and both sides use the same currency. 4 The function of foreign exchange market is to realize the exchange of currency types and prevent the risk of exchange rate changes; The function of money market is to finance short-term funds. 5 In the foreign exchange market, the profit of banks in foreign exchange business comes from the difference of exchange rate between buying and selling foreign exchange. The part of selling price higher than buying price is the bank's operating profit; In the money market, the profit of bank's short-term capital deposit and loan business comes from the difference of deposit and loan interest rate. The part of loan interest rate higher than deposit interest rate is the bank's operating profit.

9. Foreign exchange is a means of payment expressed in foreign currency for international settlement, while foreign currency is a currency other than the currency used in the country or its region.

10. Different countries or regions have different currencies, and their own currency is called local currency; The currency of other countries is called foreign currency. Foreign exchange can be exchanged between local currency and foreign currency, and between different foreign currencies, which leads to the concept of foreign exchange<

foreign exchange

foreign exchange, that is, the exchange of foreign exchange in China, is originally e to the currency exchange behavior caused by the international settlement of claims and debts

foreign exchange mainly refers to foreign currency, and it also includes the means of payment expressed in foreign currency for international settlement

the definition of foreign exchange in China is: foreign exchange refers to foreign currency, including banknotes, coins, etc; Foreign currency securities, including government bonds, treasury bonds, corporate bonds, stocks, etc; Foreign currency payment vouchers, including bills (promissory notes, cheques, etc.), bank deposit vouchers, etc; And other foreign exchange funds< From the definition, we can see that foreign exchange has the following characteristics:

1. Foreign exchange must be expressed in foreign currency; 2. It must be able to be paid abroad; 3. It must be a freely convertible currency Note: payment means expressed in non convertible currency can not be used as foreign exchange)

what is foreign exchange
generally speaking, foreign exchange refers to foreign currency or various payment means expressed in foreign currency for international debt settlement
dynamic meaning: the transaction process of converting one country's currency into another country's currency and remitting it to another country by using international credit instruments, so as to pay off the creditor's rights and debt relationship formed by economic and trade exchanges between the two countries
static meaning: foreign exchange is a means of payment expressed in foreign currency for international settlement. This means of payment includes credit instruments and securities expressed in foreign currency, such as bank deposits, commercial bills, bank drafts, bank cheques, foreign government treasury bills and short-term and long-term securities
the International Monetary Fund defines foreign exchange as: & quot; Foreign exchange is a kind of creditor's rights that can be used in the event of balance of payments deficit held by monetary administration in the form of bank deposits, treasury bonds, long-term and short-term government securities;.