On January 21, the State Council Information Office held a press conference in Beijing, inviting Wang Chunying, deputy director of the State Administration of Foreign Exchange and spokesperson, to introduce the data on foreign exchange receipts and payments in 2021 and answer questions from reporters.Photo by Xinhua News Agency reporter Jin Liangkuai
“my country’s foreign exchange market is generally stable, and the RMB exchange rate remains basically stable at a reasonable and balanced level.” Wang Chunying, deputy director of the State Administration of Foreign Exchange and spokesperson, said on the 21st that in 2021, my country’s cross-border capital flows will be reasonable and orderly, and the scale of foreign exchange reserves will be Overall stable.
Wang Chunying made the above remarks at a press conference of the State Council Information Office on the same day.
Judging from the data disclosed at the press conference on the same day, in 2021, banks’ foreign exchange settlement and sales and foreign-related receipts and payments on behalf of customers will show a “double surplus”. In 2021, banks’ foreign exchange settlement and sales transactions will total 4.9 trillion US dollars, and the scale of foreign-related receipts and payments of banks on behalf of customers will be 11.7 trillion US dollars, an increase of 24% and 35% respectively over 2020. In 2021, banks will have a surplus of US$267.6 billion in foreign exchange settlement and sales, and a surplus of US$356.4 billion in foreign-related receipts and payments by banks on behalf of customers.
“Foreign-related transactions remain active, and cross-border capital flows in an orderly manner.” Wang Chunying believes that this is mainly because my country’s epidemic prevention and control and economic recovery have maintained a leading position in the world, and trade in goods and various investment and financing activities have generally maintained a high level of activity.
In 2021, affected by some factors such as changes in the international financial environment, the exchange rate of RMB against the US dollar will fluctuate in both directions. In this context, the foreign exchange hedging ratio of Chinese enterprises has grown steadily, and the awareness of enterprise risk neutrality has increased. Data shows that in 2021, the scale of enterprises using foreign exchange derivatives such as forwards and options to manage exchange rate risks will increase by 59% year-on-year, which is 36 percentage points higher than the growth rate of foreign exchange settlement and sales by banks in the same period, driving the corporate hedging ratio to increase by 4.6 percentage points year-on-year. 21.7%.
It is worth noting that under the background of the current account surplus and the overall inflow of foreign capital, my country’s foreign investment, especially the foreign investment of the private sector, has increased accordingly. In the first three quarters of 2021, the private sector’s foreign investment will increase by US$489 billion, including US$85.4 billion in foreign direct investment. Domestic residents made nearly 100 billion U.S. dollars in overseas securities investment through the Southbound Stock Connect and QDII channels. Investments other than direct investment and portfolio investment exceeded $310 billion.
“The cross-border capital flow of domestic enterprises, financial institutions and other private sectors has both inflows and outflows, forming a pattern of independent balance of international payments.” Wang Chunying said.
Talking about the situation of my country’s foreign exchange receipts and payments in 2022, Wang Chunying analyzed that, on the one hand, uncertain factors such as the epidemic may continue to exist, but the gradual recovery of the global economy from the epidemic is still a general trend. It will make my country’s cross-border capital flow more stable and sustainable”; on the other hand, the long-term trend of domestic fundamentals is stable and improving, and my country will continue to coordinate epidemic prevention and control and economic and social development, and the two-way opening of the financial market will steadily advance , these efforts will create a very favorable policy environment for the stable and balanced flow of cross-border capital.
“From the analysis of the above two aspects, my country’s foreign exchange market is expected to show an overall stable and more balanced development trend in 2022.” Wang Chunying said.
Chart: In 2021, my country’s foreign exchange receipts and payments will stabilize banks’ foreign exchange settlement and sales showing a “double surplus”. Xinhua News Agency issued a map by Song Bo
Source: Xinhuanet
Original title: In 2021, my country’s foreign exchange receipts and payments will stabilize, and banks will show a “double surplus” in foreign exchange settlement and salesReturn to Sohu, see more
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