(A) the difference between current account and capital account management
1. RMB current account convertibility refers to the removal of all exchange restrictions on the payment and transfer of current international transactions, that is, as long as it is really the payment and transfer of international transactions under the current account, it can be paid externally without any quantitative restrictions.
2. In current account foreign exchange activities, banks still need to check the authenticity of transaction documents according to the requirements of foreign exchange management system.
(2) Implement balanced supervision over the outflow and inflow of foreign exchange funds.
In principle, the foreign exchange income of domestic institutions and individuals can be repatriated or deposited abroad, and the conditions and time limit for repatriation or deposit abroad shall be stipulated by the foreign exchange administration department of the State Council according to the balance of payments and the needs of foreign exchange management.
(3) Strengthen the statistical monitoring of balance of payments and establish an emergency safeguard system for balance of payments.
1. Domestic institutions engaged in foreign exchange business are required to submit financial and accounting reports, statistical statements and other materials in accordance with the provisions of the foreign exchange administration department of the State Council through the international balance of payments statistical declaration system.
2. All economic exchanges between China residents and non-China residents shall be declared to the State Administration of Foreign Exchange.
3. Financial institutions engaged in foreign exchange business shall submit the foreign exchange receipts and payments and account changes of customers to the foreign exchange administration authorities according to law.
(4) Maintaining the status of RMB as a sovereign currency.
RMB is the legal tender in China. The circulation of foreign currency is prohibited in People's Republic of China (PRC), and it is not allowed to be denominated and settled in foreign currency unless otherwise stipulated by the state.
1. The transactions under the goods trade between the bonded supervision area and the domestic bonded supervision area can be settled in RMB or foreign currency;
2. Transactions between institutions in the region can be settled in RMB or foreign currency.
In order to meet the reasonable needs of domestic institutions and individuals, the state allows insurance contracts that meet certain conditions to be denominated and settled in foreign currency.