The concept of foreign exchange buying price, and the difference between cash buying price and cash buying price?

Cash is also a professional term in the financial industry. Most of us don't know what it means, but we have used it. In a simple sense, it is a special case of foreign currency being remitted to China. It turns out that there will be a conversion ratio for foreign currency, which will lead to the purchase price of foreign exchange. Next, let's see what the buying price of spot exchange means By the way, learn about the difference between the purchase price of foreign exchange and the purchase price of cash.


1、 What do you mean by the buying price of foreign exchange
What does the buying price of spot exchange mean? Spot exchange refers to the foreign currency bills and vouchers that are remitted or carried in or sent in from abroad. In our daily life, we can often get in touch with overseas remittance and traveler's checks. As RMB is China's legal currency, foreign currency cash can not be used as a means of payment in China, only outside the country can become the currency of circulation. Banks need to pay for packaging, transportation, insurance and other expenses in use. As the foreign exchange on the book, the transfer of foreign exchange only needs book transfer. Therefore, in the foreign exchange rate published by the bank, cash is included in the foreign exchange rate It is not equivalent to cash, and the purchase price of cash is lower than that of cash.
What does the buying price of foreign exchange mean? Spot exchange can be simply understood as the money transferred from abroad is in the bank account. The purchase price of foreign exchange refers to the bank's purchase of "spot exchange" with domestic currency. For example, the purchase price of cash exchange is not to take $100 to the bank, but someone has remitted $100 to you. The $100 is not cash, but is recorded in your account. In the account, the US dollar is converted into RMB, and there is no cash involved. Only the exchange of two currencies is made in the account, that is, the calculation method based on the purchase price of spot exchange.

2、 The difference between the purchase price of foreign exchange and the purchase price of cash
After knowing what the buying price of foreign exchange means, let's look at the difference between the buying price of cash and the buying price of cash. First of all, we need to understand the definition of cash and cash: spot exchange refers to the bank deposit formed by international settlement methods such as cheques and remittances from abroad or into China. In daily life, cash exchange refers to overseas remittance and traveler's check, while cash refers to the deposit formed by foreign currency or coins in the bank. Domestic national currency cannot be directly used abroad, It needs to be converted into domestic currency through banks.
The price of cash and foreign exchange into RMB is different. The purchase price of cash is lower than the purchase price of cash. Therefore, do not directly transfer foreign remittance into cash or withdraw cash directly. It is better to convert it into RMB directly in the bank.

After knowing what the buying price of cash means, we analyze the difference between the buying price of cash and the buying price of cash. For more knowledge of spot exchange buying price, you can learn from our official website.

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