The account is the agreed foreign exchange, which refers to the foreign exchange used under the payment agreement concluded between the two governments.
Without the approval of the issuing country, the recorded foreign exchange cannot be freely converted into the currency of other countries, nor can it be paid to a third country, and can only be used between the two countries signing the agreement in accordance with the provisions of the agreement.
Bookkeeping foreign exchange is used when both sides open a clearing account for each other for economical use in bilateral trade and adopt the method of bookkeeping settlement.
The year-end balance of the recorded foreign exchange shall be carried forward to the next year, which shall be considered and balanced by the two governments in the next year’s trade activities.
The use of bookkeeping foreign exchange is conducive to promoting the development of international trade, while saving the cash, is a relatively common international settlement means used in international trade activities.
