Spot exchange refers to various payment vouchers expressed in foreign currency, which can be circulated, transferred in the international market, and freely convertible into other countries' currencies. Currencies of major Western countries such as the US dollar, British pound, Swiss franc, German mark, etc.
Refers to foreign currency bills remitted or brought in from abroad, which are transferred to an individual's bank account through transfer.
definition
Broadcast
Spot exchange refers to the ability to freely buy and sell in the international financial market, also known as "free foreign exchange". Foreign exchange widely used in international settlement, which is repaid internationally and can be freely exchanged for other countries' currencies. The countries that issue these currencies have relatively loose foreign exchange controls and control, some have even basically abolished foreign exchange controls, while others implement strict foreign exchange controls, and their domestic currencies cannot be freely converted into internationally recognized foreign currencies.
Main conditions
Broadcast
According to Article 8 of the IMF Agreement "General Obligations of Member States", a country's currency must meet three conditions to become a spot exchange:
1. There are no restrictions on current transactions (trade and non trade payments) and fund transfers in the country's balance of payments.
2. Do not adopt discriminatory monetary measures or exchange rates for multiple currencies.
3. At the request of another Member State, it is obligated to repurchase the domestic currency remaining in the other party's current account transactions at any time.
Freely convertible currencies are widely used in international exchange settlement, freely traded in the international financial market, and can be freely exchanged into the currencies of other countries without restrictions. In international trade, the import and export trade settled in these freely convertible currencies is called spot exchange trade.
