-
The Brazil-China Cooperation Fund for the Expansion of Productive Capacity (China-Brazil Fund) was officially launched on 30 May 2017 local time in So Paulo, Brazil. China-Latin America Production Capacity Cooperation and Investment Fund Co., Ltd. (China-Latin America Production Capacity Fund) signed the fund establishment documents with the Brazilian Ministry of Planning, Budget and Management (Brazilian Ministry of Planning). The China-Brazil Fund Steering Committee held its first meeting, deliberating and adopting the China-Brazil Fund Operating Procedures, thus officially kick-starting the China-Brazil Fund. Pan Gongsheng, Deputy Governor of the People's Bank of China and Administrator of the State Administration of Foreign Exchange, Li Jinzhang, Ambassador of China to Brazil, and Dyogo Oliveira, Brazilian Minister of Planning, were present at the ceremony. The official launch of the China-Brazil Fund, established based on the consensus between the heads of state of both countries, is a key measure of the China-Latin America Production Capacity Fund to implement China's Belt and Road Initiative and going global strategy, and will be favorable for both sides to carry out production capacity cooperation and seek mutual benefit. Next, the China-Brazil Fund will focus on boosting strategic cooperation between China and Brazil and robust operation of the Fund, based on the market-oriented operation mechanism. 2017-06-02/en/2017/0602/1270.html
-
FILE: Annual Report of the State Administration of Foreign Exchange (2003) 2004-07-26/en/2004/0726/1272.html
-
FILE: Annual Report of the State Administration of Foreign Exchange (2004) 2005-07-25/en/2005/0725/1273.html
-
The State Administration of Foreign Exchange (SAFE) has recently disseminated the data on banks' foreign exchange settlement and sales as well as their foreign-related receipts and payments for customers for September 2017. Its press spokesperson answered media questions on relevant issues. Q 1: Could you brief us on the characteristics of China's cross-border capital flows in the first three quarters of this year? A: China's cross-border capital flows found an equilibrium in the first three quarters, and the supply and demand of foreign exchange has been balanced recently. The main characteristics are as follows: First, the deficits in banks' settlement and sales of foreign exchange and in their foreign-related receipts and payment contracted significantly. In the first three quarters, the deficit in banks' settlement and sales was USD 112.9 billion, down by 54% year on year, versus a deficit of USD 3.8 billion in August, and a surplus of USD 300 million in September. In the same period, banks' foreign-related receipts and payments for customers recorded a deficit of USD 111.5 billion, down by 56% year on year, compared with a deficit of USD 3.5 billion in August, and a further deficit of USD 1.7 billion in September. Second, the sales rate of foreign exchange plummeted on a year-on-year basis and corporate demand for foreign exchange financing was on the rise. In the first three quarters, the foreign exchange sales rate that measures the motives of companies for purchasing foreign exchange, or the ratio of customers' purchase of foreign exchange from banks to customers' foreign-related foreign exchange payments, reached 66%, down by eight percentage points year on year. In particular, the rate was 68%, 67% and 63% in the first, second and third quarters respectively, suggesting companies are more sensible in buying foreign exchange, and have conducted foreign exchange financing based on demand, with their purchases of foreign exchange to service debt becoming a rarer case. The domestic outstanding foreign exchange loans by the end of September dropped slightly from the end of the previous year, and went down by more than USD 70 billion year on year. Third, the sales settlement rate rose on a year-on-year basis while maintaining stability, and companies' and individuals' desire to hold foreign exchange was weakened. In the first three quarters, the sales settlement rate that measures the desire to settle foreign exchange, or the ratio of customers' sales of foreign exchange to banks to customers' foreign-related foreign exchange receipts was 63%, up by two percentage points year on year. The ratio was 62%, 63% and 64% in the first, second and third quarters respectively. As for companies' domestic foreign exchange deposits, the balance rose by nearly USD 40 billion in the first quarter, compared with an increase of USD 9 billion in the second quarter and a decrease of USD 25.3 billion in the third quarter. According to the individuals' domestic foreign exchange deposits, the balance rose slightly by USD 300 million in the first quarter, versus a deficit of USD 2 billion in the second and third quarters respectively, indicating a weaker desire to hold foreign exchange among domestic market participants, and a rise in using self-owned foreign exchange in making external payments. Fourth, banks' forward foreign exchange sales and settlement recorded a surplus. In the first three quarters, the value of foreign exchange contracted for forward settlement by banks for customers grew 1.2 times year on year, while that of foreign exchange contracted for forward sales dropped by 5%, leading to a surplus of USD 7.7 billion, compared with a deficit of USD 58.1 billion for the same period last year, indicating markedly weaker expectations of RMB depreciation, and the demand for forward foreign exchange settlement and sales was adjusted. Fifth, the foreign exchange market recorded a basic equilibrium between supply and demand, boosting the balance of foreign exchange reserves to rise continuously. As at the end of September, China's balance of foreign exchange reserves hit USD 3.1085 trillion, up by USD 98 billion from the end of 2016. In particular, the balance of foreign exchange reserves went up for eight consecutive months from February to September. Q2: Could you explain why China's cross-border capital flows have been further balanced recently? What would you say about the prospects? A: China's cross-border capital flows have been increasingly balanced since the beginning of this year, which indicates the developments and changes in the economic and financial environment both at home and abroad. Firstly, China, perseverant in implementing new development concepts in building its economy, deepens the supply-side structural reform, enhances the quality and benefits of developments, and optimizes its economic structure, leading to an obvious trend of more stable economy with a good momentum for growth and stronger internal foundation. Specifically, the new open economic system has been refined, the reform and opening up measures in the financial market have been implemented and the equilibrium of cross-border capital flows has been boosted, including the optimization and improvement of the RMB exchange rate market formation mechanism, introduction of a series of policies for fueling the growth of foreign-owned enterprises, the official launch of the Bond Connect between mainland China and Hong Kong, as well as the inclusion of A shares in the MSCI Emerging Markets index. Secondly, the global economy continues to recover, and the financial markets have been less fluctuating, suggesting a stable external environment. The latest projections from the International Monetary Fund (IMF) show that the global economy will grow at a rate of 3.6% in 2017, 0.4 percentage point faster than in 2016. Moreover, although the FED has raised the interest rates for two times thus far and plans to shrink the balance sheet, market expectations are stable, and the USD exchange rates have been depreciating since the beginning of this year. Going forward, China's cross-border capital flows will continue to stay stable, which is supported by three fundamentals. Firstly, the economic fundamentals will be stronger. Since the beginning of this year, international organizations have revised upward their projections of China's economy for 2017 many times. The IMF, for example, increased its expectations from 6.5% that was projected at the beginning of this year to the current 6.8%, and the World Bank, from 6.5% to 6.7%, denoting the international community is more optimistic about China's economy. China will continue to implement the new development concepts and build a modern economic system to boost the sustained and healthy development of the economy. Secondly, the policy fundamentals will provide guarantee. China will participate more in and boost economic globalization and developed a higher-level open economy. On the one hand, along with the improving business environment in China and the implementation of opening up policies, foreign capital inflows will continue to stay stable. On the other hand, the domestic bond and stock markets will cement their ties with global markets and relevant facilitation measures will be introduced, which will be helpful to promote overseas investors to invest in the domestic capital market. Thirdly, the market fundamentals will be strengthened. The enhancement of the RMB exchange rate formation mechanism, further diversified market participants, and weaker expectations of one-way sustained appreciation and depreciation will help to curb the significant fluctuations of cross-border capital and ensure the overall equilibrium between supply and demand of foreign exchange. The above fundamentals will continue to play a fundamental role in the future. In particular, after the success of the 19th CPC National Congress, China will secure a decisive victory in building a moderately prosperous society to achieve its first centennial goals and open up a new chapter to build a modern socialist country with Chinese characteristics to move on to achieve its second centennial goals. Under such circumstances, there surely will be a stronger confidence in the long-term economic and social development of China in both domestic and overseas markets, and a more solid foundation for stable cross-border capital flows in China. Q3: What impact will the Fed's shrinking of the balance sheet on China's cross-border capital flows? A: The Fed's interest rate hikes and shrinking of the balance sheet will not fundamentally shake the stability of China's cross-border capital flows. Since the Fed's first interest rate hiked at the end of 2015, China has witnessed a process from outflows to equilibrium in its cross-border capital flows. The main causes are: First, a gradual process will remain as the main characteristics of the Fed's boost to the normalization of its monetary policy. Since the Fed began to raise the interest rates, the gradual process has proved to have weakened the impact on the markets. After the September FOMC meeting, the chair of the Fed stressed in answering media questions that "the balance sheet will be shrunk in a gradual and predictable process". As a matter of fact, this accords with the economic and financial performance in the US. Given that the US' long-term economic growth prospects remain weak, an in-depth analysis shall be required on the impact of the Fed's monetary policy adjustment on its economy; the US' inflation has been low with fluctuations recently; and the rapid growth in the US' asset prices in recent years has drawn wide concern in the market that the fast adjustment of the Fed's monetary policy will prick the asset bubble. Second, the US' interest rates and exchange rates are exposed to more diversified factors, including the Fed's monetary policy adjustment. As for interest rates, after the first interest rate hike at the end of 2015, the Federal Funds rate rose by one percentage point overnight, but the longer-term interest rates have grown in a descending order, indicating market interest rate will also be impacted by the long-term prospects of economic growth. As for foreign exchange rates, there are complex contributing factors, such as the US economic performance, and the economic and financial conditions in other major economics, in addition to the Fed's monetary policy. For example, during the Fed's balance sheet expansion, the USD exchange rate did not fall continuously, but featured two-way fluctuations; but since the beginning of this year, the Fed has raised interest rates for two times, but the USD exchange rate has depreciated. Third, China has been stronger in adapting and responding to the changes in external environment. Firstly, China still has various fundamental advantages, such as relatively higher economic growth, a stable big picture, robust financial market, surplus under the current account, and adequate foreign exchange reserves. Secondly, China's ability to make response has been strengthened, such as a more remarkable momentum for growth in China's economy while maintaining stability, further opening up of domestic markets, enhanced RMB exchange rate formation mechanism, and more sensible investing and financing activities among market participants. Q4: Since the beginning of this year, China has witnessed strengthened elasticity in two-way fluctuations of the RMB exchange rate. Do you have any ideas on hedging against exchange rate risk? Will the SAFE enhance relevant education and training? A: As the RMB exchange rate is increasingly volatile, exchange rate risk management is more crucial to companies' production and operation. But some domestic enterprises have to raise their awareness of hedging against exchange rate risks: firstly, exchange rate risk shall be looked at in an objective manner. Some enterprises lack the concept of risk neutrality, and are used to betting on unilateral direction such as appreciation or depreciation, thus replacing precise risk management with subjective market judgment. Secondly, an accurate understanding of hedging shall be developed. Some enterprises are reluctant to pay for hedging, or use hedging as a profit tool, neglecting its essential function of risk aversion by locking up the impact of exchange rate uncertainties on companies' profits from primary business. The SAFE will continue to guide the market to accurately understand exchange rate risk and improve exchange rate risk management. Firstly, boosting the in-depth development of the foreign exchange market by supporting financial institutions to make innovations to serve the real economy and foreign exchange products that adapt to the market demand. Secondly, guiding banks in prudential operations and urging banks to ensure customer risk education and management. Thirdly, guiding enterprises to build an accurate awareness of exchange rate risk, develop an accurate understanding of exchange rate risk aversion instruments, and hedge exchange rate exposure, avoiding deviation from principal business and reality. Our experience and recommendation of corporate exchange rate hedging: enterprises shall adapt to the normal of two-way fluctuations of RMB exchange rate, change the uncertainties into certainties of two-way fluctuations through hedging, with a focus on primary business; enterprises shall understand their transactions, valuate derivatives before transaction and decide on the level of risk restriction; enterprises shall also engage in proper hedging, regarding derivative deals as the instruments to lock up risks rather than a way to make money. For enterprises, hedging against foreign exchange rate risk through RMB foreign exchange derivatives requires continuous education on risks to investors, and also is a process of learning from doing and accumulation. Q5: As China's cross-border capital flows are being stabilized with a good momentum, what changes will take place to the orientation of policies for foreign exchange administration? A: Going forward, foreign exchange authorities will get united around the CPC Central Committee with Comrade Xi Jinping at its core and implement the gist of the 19th CPC National Congress. They will support the unified leadership of the CPC Central Committee on finance and carry out the decisions and plans of the CPC Central Committee and the State Council. With a focus on serving the real economy, guarding against financial risks and deepening financial reform, they will strive to enhance cross-border trade and investment facilitation, boost sustained and healthy economic development, guard against cross-border capital flow risks, and safeguard China's economic and financial security, so as to make great contribution to the fulfillment of the two centennial goals and the realization of the Chinese dream of the great renewal of the Chinese nation. Two basic principles shall be adhered to in foreign exchange administration: first, foreign exchange administration shall serve the real economy and the reform and opening up, and support and boost the two-way liberalization of the financial market to enhance trade and investment facilitation. Second, efforts shall be made to guard against risks arising from cross-border capital flows, protect the macro-economy and financial stability from being impacted by disorderly and high-intensity cross-border capital flows and maintain the stability of the foreign exchange market, in a bid to create a healthy, benign, and stable foreign exchange market environment for reform and opening up. Four basic connotations shall be stressed on the orientation of policies: first, adhering to reform and opening up and refining the foreign exchange administration framework to further promote trade and investment facilitation and ramp up the efficiency and level of foreign exchange administration in serving the real economy. Second, stably realizing capital account convertibility to drive reform and opening up in finance in an active and prudent way. Third, establishing a macro-prudential administration and micro market regulation system for cross-border capital flows, and cracking down on foreign exchange irregularities to maintain China's financial stability and economic security. Fourth, refining the RMB exchange rate formation mechanism to drive the in-depth development of the foreign exchange market. Efforts shall be made to preserve and grow the value of foreign exchange reserves while ensuring the security and liquidity of foreign exchange reserves. 2017-10-19/en/2017/1019/1377.html
-
On the afternoon of September 28, 2017, the Theory Study Central Team of the CPC Leadership of the State Administration of Foreign Exchange (SAFE) got the opportunity of celebrating the 80th anniversary since On Practice and On Contradiction were published to organize the study on philosophy and its use, along with the implementation of the gist of the National Financial Work Conference and of the speech delivered by Secretary General Xi Jinping on July 26, as well as his remarks on Party governance based on systems and regulations and intra-Party regulations and systems. At the study, which was chaired by Pan Gongsheng, Secretary of the CPC Leadership and Administrator of the SAFE, members of the CPC Leadership had in-depth discussions and exchanges concerning foreign exchange administration and thinking. Attendees of the study included officials from relevant departments of the SAFE Head Office. At the study, comprehensive and in-depth learning and discussions were held on the theoretical contributions and contemporary value of Marxist philosophy against the background of the production of On Practice and On Contradiction. The CPC Leadership of the SAFE believes that On Practice and On Contradiction by Mao Zedong are great accomplishments based on China's revolution and traditional philosophy, provide a significant philosophical basis for Marxist philosophy with Chinese characteristics, and help CPC members build a scientific worldview and methodology, playing a significant part in the history of Chinese revolution, or even in the history of the CPC, and therefore will serve a guiding role in building a socialist economy with Chinese characteristics. Since the 18th National Congress of the Communist Party of China, the CPC Central Committee with Comrade Xi Jinping at its core has focused on pressing ahead with the supply-side structural reform, and enriched and refined the new concepts, ideas and strategies on governing China, achieving remarkable progress that is of great practical and historical importance in reform, development, and stability, internal politics, diplomacy and national defense, and governance of the CPC, the country and its military forces, and making breakthroughs in reforms in key areas and links. These new practices that integrate Marxism with China's reality give a full display of the strong vitality of On Practice and On Contradiction in modern times. The SAFE's CPC Leadership stresses that CPC organizations and leaders at various levels develop a full understanding of the practical significance of studying philosophy and its use, and study classics such as On Practice and On Contradiction, to raise their awareness, sum up experience and make innovations. They shall have an in-depth understanding of the theoretical principles of Marxist epistemology and material dialectics, and of the underlying meanings of "seeking truth from facts"," proceeding from reality in all things we do", "no investigation, no right to speak", and "analysis of contradictions", to base their beliefs and convictions on the rational recognition of sciences and theories. They shall also have a profound knowledge of the rationales, basic views and methodology of Marxist philosophy, and further their understanding and grasp of the gist of important speeches by Secretary General Xi Jinping and the stance, views and methodology of Marxism laid out in the new philosophy, thinking and strategies on state governance by the CPC Central Committee. By following the experience of integrating Marxism with China's reality, they shall study and use philosophy, become more conscious of emancipating their minds and seeking truth from facts, and more ready to do things with critical thinking, and integrate Marxist stances, views and methodology with the theories, directions, guidelines and policies of the CPC and implement them in foreign exchange administration. They shall study and implement the gist of the National Financial Work Conference and understand the accomplishments in financial reform and developments in China. With a focus on "serving the real economy, guarding against financial risks and deepening financial reform", they shall analyze and understand the current economic and financial conditions, capture the principal contradictions and principal aspects of contradictions in social and economic developments, and strengthen critical and strategic thinking, to adapt to the new normal of foreign exchange administration and be poised for the upcoming 19th National Congress of the Communist Party of China with excellent performance. As emphasized by the CPC Leadership of the SAFE, the remarks of Secretary General Xi Jinping on Party governance based on systems and regulations address major issues regarding the building of intra-Party regulations and systems under the new circumstances, and show the progress of the building of intra-Party regulations and systems, key measures adopted, accomplishments already made and fresh experience accumulated by the CPC Central Committee with Comrade Xi Jinping at its core. These remarks enrich and develop the Marxist theory of Party building and provide a significant reference for enhancing the building of intra-Party regulations and systems. Party organizations of the SAFE at various levels and all Party members shall develop a comprehensive and systematic understanding of the thoughts of Xi Jinping on governing the CPC based on systems and regulations, and of the significant impact of intra-Party regulations and systems on governing the CPC based on systems and regulations, enhance the study and promotion of intra-Party regulations and systems, and boost the effective implementation of intra-Party regulations and systems so as to deepen the comprehensive and strict governance of the CPC. According to Pan Gongsheng, in the run-up to the 19th National Congress of the Communist Party of China, foreign exchange authorities shall act in strict compliance with the political discipline and norms, and raise the "four awareness" to become highly aligned with the CPC Central Committee with Comrade Xi Jinping at its core in thoughts, politics and action, and firmly uphold the authority of the CPC Central Committee. They shall intensify monitoring and analysis of foreign exchange markets and cross-border capital flows to maintain the stable performance of foreign exchange markets. They shall also keep strict confidentiality, ensure national security, and pay attention to safe production to safeguard stable operation of all business systems for foreign exchange. They shall pay close attention to market expectation management to effectively keep market confidence stable. Persistent efforts shall be made to clean up undesirable work styles, uphold integrity, combat corruption, and keep alert to corruption. The leaders shall strictly perform their responsibilities in shift work and leading teams on different shifts, to ensure efficient operation of the emergency mechanism. Moreover, a prior plan shall be made to get well prepared for the in-depth study and implementation of the gist of the 19th National Congress of the Communist Party of China. 2017-09-29/en/2017/0929/1335.html
-
The State Administration of Foreign Exchange (SAFE) has recently disseminated the data on banks' foreign exchange sales and settlements and banks' foreign-related payments and receipts for customers for November 2017, and its press spokesperson answered media questions on recent cross-border capital flows. Q: Could you brief us on China's cross-border capital flows for November? A: China's foreign exchange market continued to see equilibrium between supply and demand in November. According to the foreign exchange reserves data released on December 7, the balance of foreign exchange reserves as at the end of November amounted to USD 3.1193 trillion, up by USD 10.1 billion month on month, recovering for 10 consecutive months, primarily due to the basic equilibrium between domestic demand and supply of foreign exchange. As for the composition of the demand and supply of foreign exchange, a deficit of USD 7.5 billion was recorded in foreign exchange sales and settlements in November. On the other hand, to mitigate risks and preserve value, enterprises' net sales of foreign exchange in RMB-foreign exchange derivatives markets including forwards and options rose in the month, leading to a decrease of USD 4.1 billion in foreign exchange position of banks for the month, hence increasing the supply of foreign exchange. With other factors taken into consideration, the supply and demand of foreign exchange in China found a basic equilibrium in the month. In addition, foreign-related receipts and payments of non-banking sectors such as companies and individuals registered a deficit of USD 12.9 billion for the month, of which, the receipts and payments of foreign exchange were relatively balanced with a small deficit of USD 1.4 billion. Cross-border capital flows through major channels were stable and reasonable. First, the willingness of market participants to settle foreign exchange was strengthened while their desire to purchase foreign exchange was weakened. In November, the ratio of foreign exchange settlement by bank customers to foreign-related foreign exchange receipts reached 61.0%, up by 5.4 percentage points year on year; the ratio of foreign exchange purchases by bank customers to foreign-related foreign exchange payments was 62.7%, down by 9.5 percentage points year on year. Second, foreign exchange sales and settlement under trade in goods remained in surplus and capital inflows and foreign exchange settlement under FDI climbed. In November, foreign exchange sales and settlements under trade in goods of banks for customers recorded a surplus of USD 15.7 billion, up by 29% year on year; foreign exchange capital settlement under FDI almost doubled on a year-on-year basis. Third, foreign exchange purchased by individuals continued to fall stably. In November, foreign exchange purchased by individuals plummeted by 44% year on year and was 15% lower than the monthly average of January-October 2017, indicating a low level in recent years. China's economy continued to perform stably with good momentum for growth, providing a fundamental guarantee for stable cross-border capital flows. In November, foreign demand continued to be strengthened and domestic demand remained robust, driving USD-denominated exports to rise by 12% year on year, a sub-high since the beginning of this year; and China's imports grew by 18%; official PMI was 51.8, up by 0.2 percentage point month on month, falling within the expansion range for 16 straight months. Following the general work guideline of making progress while maintaining stability and the new concept for development, China will focus on the supply-side structural reform going forward, pressing ahead with the efforts of stabilizing growth, promoting reform, adjusting structure, benefiting the public and guarding against risks, with the aim of boosting the sustainable and healthy development of the economy and society and laying a solid foundation for the basic equilibrium of China's balance of payments in the medium and long term. 2017-12-18/en/2017/1218/1387.html
-
Q: The latest data on foreign exchange reserves disseminated by the People's Bank of China show China's foreign exchange reserves as at the end of September 2017 went up by USD 17 billion month on month. Could you brief us on the causes behind such a change? A: As at the end of September, China posted USD 3.1085 trillion in foreign exchange reserves, up by USD 17 billion or 0.5% month on month, marking the eighth consecutive month of increases. In September, China's cross-border capital flows and trading behaviors of domestic and foreign market participants were further stabilized and balanced. In global financial markets, major exchange rates and asset prices went through ups and downs, and the overall foreign exchange reserve investments rose, boosting foreign exchange reserves to pick up. In the first three quarters, China's foreign exchange reserves bottomed out in January 2017 and recorded increases for the eighth-straight month in September, representing the longest period for continuous increases since June 2014. The foreign exchange reserves as at the end of September rose by USD 98 billion or 3.3% from the beginning of 2017, while those for the same period of the previous year fell by USD 164 billion. Overall, the supply and demand in the domestic foreign exchange market have found an equilibrium, non-USD currencies appreciate against US dollars in the global financial markets, and asset prices rise. All of these have contributed to the recovery of foreign exchange reserves. Q: What would you say about the recovery of China's foreign exchange reserves for the eighth-straight month? What will be the future trends of foreign exchange reserves? A: Since the very beginning of this year, China's economic and financial performance have stayed stable with a good momentum for growth, providing a fundamental guarantee for the continued and stable recovery of China's foreign exchange reserves. In the first three quarters, China's economy grew within a reasonable range, its structural adjustment was deepened, and quality and benefit kept rising, indicating its economy is stable with a good momentum for growth. The RMB exchange rate recorded two-way fluctuations and grew while maintaining stability, the cross-border capital flows were stable and orderly, and the balance of payments was basically balanced. All of these have facilitated the stable recovery of foreign exchange reserves. Going forward, as the domestic economy remains stable with a good momentum for growth, the reform and opening up goes deeper, and market expectations become further stabilized, China will see a more solid foundation for stable cross-border capital flows. As the three tasks, namely, finance serving the real economy, guarding against financial risks and deepening the financial reform, are pressed ahead with in an orderly manner, China's economy and finance will achieve benign circulation and healthy development, which will continue to promote the equilibrium and stability in the balance of payments and foreign exchange reserves. 2017-10-09/en/2017/1009/1376.html
-
Q: The foreign exchange reserves data recently disseminated by the People's Bank of China show that China's foreign exchange reserves for November 2017 rose by USD 10.1 billion month-on-month. Could you explain such a rise in foreign exchange reserves? What will be the future trends in foreign exchange reserves? A: As at the end of November 2017, China posted USD 3.1193 trillion in foreign exchange reserves, up by USD 10.1 billion or 0.3% month-on-month, marking the tenth consecutive month of increases. In November, China's cross-border capital flows and trading behaviors of domestic and foreign market participants remained stable and balanced; the global financial markets went through slight fluctuations, the foreign exchange rates of major non-USD currencies rose and the asset prices changed, thus leading to the rise in China's foreign exchange reserves. Since the beginning of this year, China's economy has developed steadily with a remarkable momentum for growth, restructuring has gone deeper, the shift between new and old dynamics has sped up, and the quality and benefits have kept increasing, providing a strong boost to more stable and balanced cross-border capital flows. The robust balance of payments has provided a solid guarantee for the continuous and stable recovery of foreign exchange reserves. Looking ahead, the success of the 19th CPC National Congress has strengthened the confidence of domestic and foreign market participants in China's economic development, indicating stronger foundation and conditions for China to sustain stable economic development with a strong momentum for growth. Along with the deepening of the interest rate and foreign exchange rate market reforms, market expectations will be improved, suggesting the foundation for the equilibrium of the balance of payments and stable cross-border capital flows will be solidified, which will be favorable for the overall stability of foreign exchange reserves. 2017-12-07/en/2017/1207/1385.html
-
FILE: Template on International Reserves аnd Foreign Currency Liquidity(аs аt Aug 31 2017) 2017-09-30/en/2017/0930/1330.html
-
FILE: Template on International Reserves аnd Foreign Currency Liquidity(аs аt Oct 31 2017) 2017-11-30/en/2017/1130/1347.html