Foreign exchange makes possible international transactions such as imports and exports and the movement of capital between countries. The value of one foreign currency in relation to another is defined by the exchange rate. Foreign exchange is not allowed to circulate or to be used in lieu in the settlement of accounts except in free trade zones. If you want to learn how to trade forex, check out this Forex Range Trader review. Any organization or individual with international balance of payment (including overseas-invested businesses, foreign financial institutions and the resident Chinese offices of foreign legal persons except for those of international organizations and foreign embassies or consulates).