It refers to convertible accounts opened by domestic institutions, institutions in China and individuals in banks and non-bank financial institutions approved to conduct business in accordance with relevant account management regulations.
The account is opened in a bank, but the State Administration of Foreign Exchange is the examination and approval authority for opening a foreign exchange account.
Therefore, all domestic institutions must first go to the State Administration of Foreign Exchange for examination and approval to open a foreign exchange account, and open an account at the bank with the “AOA for Foreign Exchange Account under current Account (or capital account)” issued by the SAFE office.
But if there is only a small amount of current account foreign exchange income, it is not allowed to open a foreign exchange account, such income can only be sold to the bank.
The SAFE office will check and ratify a maximum limit for the settlement account according to the foreign exchange income from the current account of different units. The foreign exchange retained in the account shall not exceed this limit, and the excess part shall also be settled.
