After China’s foreign exchange trading turned to surplus in September, the surplus is further consolidated in October. This indicates that market participants are more rational in foreign exchange settlement and sale. The foundation for the cross-border capital flow becomes more stable and balanced.
According to the latest statistics released by the State Administration of Foreign Exchange (SAFE) on November 16, the surpluses of foreign exchange trading in banks reached 2.8 billion U.S. dollars in October. The reporter observed that from January to August this year, China’s foreign exchange trading has been in a deficit, with a monthly average deficit of 14.15 billion U.S. dollars. In September, it finally turned to surplus at 300 million U.S. dollars.
A SAFE spokesperson pointed out that this shows that the foreign exchange supply and demand at both home and abroad basically maintains balance. The spokesperson further said that China's cross-border capital flow remained basically balanced in October. In addition to the continuing surpluses of foreign exchange trading, the foreign-related receipts and payments in non-banking sectors tended to be more balanced. In October, non-banking sectors, including enterprises and individuals, made a surplus of 100 million US dollars in foreign-related receipts and payments. And the reading was a deficit of 1.7 billion US dollars in September. Meanwhile, the balance of foreign exchange reserves kept rising. As of the end of October, China's foreign exchange reserves reached 3.1092 trillion U.S. dollars, an increase of 98.7 billion U.S. dollars from the end of 2016 and an increase of 700 million U.S. dollars from the end of last month. This has been an increase for the 9th consecutive month.
Analyzing the data structure, we can find that the current foreign exchange receipts and payments of the market players is more stable and orderly, promoting the independent balance of foreign exchange supply and demand. The above spokesperson pointed out that firstly market participants are more rational in foreign exchange settlement and sale. The willingness to settle foreign exchange in October will be generally stable. The ratio of foreign exchange settlement to foreign-related receipts in banks is 62.9%, slightly increased by 0.1% over the previous three quarters. The intention to buy foreign currency further declines. The ratio of foreign exchange purchases to foreign exchange receipts in banks was 61.6%, down 4.5 percentage points from the previous three quarters. Secondly, foreign exchange inflows, including trade in goods, utilization of foreign capital and cross-border financing, continued to grow. In October, the surpluses in the foreign exchange settlement and sales of foreign exchange brokered deposits increased 42 percent. The settlement of foreign exchange for foreign direct investment increased both on a yearly and monthly basis. Cross-border financing continued to rebound steadily.
The SAFE spokesman said that the stable and sound trend for China’s economic development is more solid, which supports Chin’s cross-border capital flow to be more stable and balanced. The 19th National Congress of the Communist Party of China made overall deployment on the two centenary goals. It proposed to build modernized economic system, continue to switch development model, optimize economic structure, switch economic growth and boost sustainable and healthy economic development, which will be foundation of promoting balance of international payment and keep cross-border capital flow stable in the medium and long term.
According to the latest statistics released by the State Administration of Foreign Exchange (SAFE) on November 16, the surpluses of foreign exchange trading in banks reached 2.8 billion U.S. dollars in October. The reporter observed that from January to August this year, China’s foreign exchange trading has been in a deficit, with a monthly average deficit of 14.15 billion U.S. dollars. In September, it finally turned to surplus at 300 million U.S. dollars.
A SAFE spokesperson pointed out that this shows that the foreign exchange supply and demand at both home and abroad basically maintains balance. The spokesperson further said that China's cross-border capital flow remained basically balanced in October. In addition to the continuing surpluses of foreign exchange trading, the foreign-related receipts and payments in non-banking sectors tended to be more balanced. In October, non-banking sectors, including enterprises and individuals, made a surplus of 100 million US dollars in foreign-related receipts and payments. And the reading was a deficit of 1.7 billion US dollars in September. Meanwhile, the balance of foreign exchange reserves kept rising. As of the end of October, China's foreign exchange reserves reached 3.1092 trillion U.S. dollars, an increase of 98.7 billion U.S. dollars from the end of 2016 and an increase of 700 million U.S. dollars from the end of last month. This has been an increase for the 9th consecutive month.
Analyzing the data structure, we can find that the current foreign exchange receipts and payments of the market players is more stable and orderly, promoting the independent balance of foreign exchange supply and demand. The above spokesperson pointed out that firstly market participants are more rational in foreign exchange settlement and sale. The willingness to settle foreign exchange in October will be generally stable. The ratio of foreign exchange settlement to foreign-related receipts in banks is 62.9%, slightly increased by 0.1% over the previous three quarters. The intention to buy foreign currency further declines. The ratio of foreign exchange purchases to foreign exchange receipts in banks was 61.6%, down 4.5 percentage points from the previous three quarters. Secondly, foreign exchange inflows, including trade in goods, utilization of foreign capital and cross-border financing, continued to grow. In October, the surpluses in the foreign exchange settlement and sales of foreign exchange brokered deposits increased 42 percent. The settlement of foreign exchange for foreign direct investment increased both on a yearly and monthly basis. Cross-border financing continued to rebound steadily.
The SAFE spokesman said that the stable and sound trend for China’s economic development is more solid, which supports Chin’s cross-border capital flow to be more stable and balanced. The 19th National Congress of the Communist Party of China made overall deployment on the two centenary goals. It proposed to build modernized economic system, continue to switch development model, optimize economic structure, switch economic growth and boost sustainable and healthy economic development, which will be foundation of promoting balance of international payment and keep cross-border capital flow stable in the medium and long term.
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