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When you start editing that 16-bit Unicode file, and it has a BOM, Vim will
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detect this and convert the file to utf-8 when reading it. The 'fileencoding'
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option (without s at the end) is set to the detected value. In this case it
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file format is common on MS-Windows (e.g., for registry files).
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When writing the file, Vim will compare 'fileencoding' with 'encoding'. If
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they are different, the text will be converted.