Foreign currency, also known as Foreign currency in English, is a creditor’s right maintained by the administrative authorities (central bank, monetary management agency, Foreign exchange stabilization fund and the Ministry of Finance) in the form of bank deposits, Treasury bills, long-term and short-term government securities, etc., which can be used in time.
Including foreign currency, foreign currency deposits, foreign currency securities (government bonds, Treasury bills, corporate bonds, stocks, etc.), foreign currency payment certificates (bills, bank deposit certificates, postal savings certificates, etc.).
There are two definitions of general foreign exchange: broad and narrow;
Broad: All assets owned by a country in terms of foreign currency.
It refers to the flow of money between countries and the currency of one country into the currency of another country, in order to pay off international creditor’s rights, debt relations of a specialized business activities.
Narrow sense: expressed in foreign currency, generally accepted by all countries, can be used for international settlement of claims and debts of various means of payment.
It has three characteristics, namely, affordability, availability and exchangeability.
