-
On September 25, 2023, Pan Gongsheng, PBOC Governor and SAFE Administrator, met with Henry Paulson, Chairman of the Paulson Institute. Henry Paulson also answered questions from the PBOC and SAFE staff on issues including global economic developments, China-U.S. economic relations and green finance in a discussion chaired by Governor Pan. Xuan Changneng, Deputy Governor of PBOC, and Deborah Lehr, Vice Chairman and Executive Director of the Paulson Institute, also participated in the discussion. 2023-09-25/en/2023/0925/2127.html
-
On October 12, 2023, Pan Gongsheng, PBOC Governor and SAFE Administrator, met with Federal Reserve Chairman Powell on the sideline of the Annual Meetings of the International Monetary Fund and the World Bank Group in Marrakesh, Morocco. They exchanged views on global economic developments, cooperation between the PBOC and the Federal Reserve and other issues of mutual interest. 2023-10-13/en/2023/1013/2131.html
-
On October 12, 2023, Pan Gongsheng, PBOC Governor and SAFE Administrator, met with ECB President Christine Lagarde on the sideline of the Annual Meetings of the International Monetary Fund and the World Bank Group in Marrakesh, Morocco. They exchanged views on global economic developments, cooperation between the PBOC and the ECB, green finance and other issues of mutual interest. 2023-10-13/en/2023/1013/2132.html
-
On September 27, 2023, Pan Gongsheng, PBOC Governor and SAFE Administrator, met with Executive Vice President Dombrovskis of the European Commission. They exchanged views on issues related to China-EU financial cooperation. 2023-09-27/en/2023/0927/2129.html
-
On September 26, 2023, Dr. Pan Gongsheng, the PBC Governor and SAFE Administrator, met with Dr. Hassan Abdalla, Governor of the Central Bank of Egypt. They exchanged views on strengthening financial cooperation between China and Egypt. 2023-09-26/en/2023/0926/2128.html
-
As shown in the statistics of the State Administration of Foreign Exchange (SAFE), in September 2023, the amount of foreign exchange settlement and sales by banks was RMB 1270.5 billion and RMB 1366.9 billion, respectively. During January to September 2023, the accumulative amount of foreign exchange settlement and sales by banks was RMB 11706.1 billion and RMB 11968.3 billion, respectively. In the US dollar terms, in September 2023, the amount of foreign exchange settlement and sales by banks was USD 176.9 billion and USD 190.3 billion, respectively. During January to September 2023, the accumulative amount of foreign exchange settlement and sales by banks was USD 1670.3 billion and USD 1707.1 billion, respectively. In September 2023, the amount of cross-border receipts and payments by non-banking sectors was RMB 3623.4 billion and RMB 4010.5 billion, respectively. During January to September 2023, the accumulative amount of cross-border receipts and payments by non-banking sectors was RMB 32217.9 billion and RMB 32683.5 billion, respectively. In the US dollar terms, in September 2023, the amount of cross-border receipts and payments by non-banking sectors was USD 504.4 billion and USD 558.3 billion, respectively. During January to September 2023, the accumulative amount of cross-border receipts and payments by non-banking sectors was USD 4593.3 billion and USD 4656.4 billion, respectively. Addendum: Glossary and relevant definitions Balance of payments (BOP) refers to all economic transactions between residents and non-residents. Foreign exchange settlement and sales by banks refers to settlement and sale transaction that bank executes for customers and for the banks themselves, including statistic data on settlements of forward contracts for foreign exchange settlement and sales and the exercises of option, and excluding the transactions in the interbank foreign exchange market. The statistic reporting date of Foreign exchange settlement and sales by banks should be the trade day of the Foreign exchange settlement and sales transaction. By definition, foreign exchange settlement means that foreign exchange holders sell foreign exchange to banks, and foreign exchange sales means that banks sell foreign exchange to foreign exchange buyers. The newly signed contract amount of forward foreign exchange settlement and sales refers to the binding forward contract between a bank and its client that predetermines foreign exchange currency, amount, exchange rate and tenor which to be executed upon maturity. The unwind amount of forward foreign exchange settlement and sales refers to, where client is unable to perform the original forward contract due to change in its real demand, client to fully or partially close its forward position by executing another deal with opposite direction to the original contract. The rolling amount of forward foreign exchange settlement and sales refers to client to adjust the settlement date of original contract due to change in its real demand. The outstanding amount of forward foreign exchange settlement and sales by the end of the current period refers to the total amount of forward contracts accumulated from all non-matured forward contracts with client. The net Delta exposure of outstanding options refers to the implied foreign exchange spot risk exposure from outstanding option contracts that bank executed with client. The cross-border receipts and payments by non-banking sectors refers to the receipts and payments between domestic non-banking sectors (including institutional and individual residents) and non-residents through domestic banks, excluding receipts and payments in cash. In particular, the statistics includes cross-border receipts and payments between non-banking sectors and non-residents through domestic banks (including RMB and foreign currency), and domestic receipts and payments between non-banking sectors and non-residents through domestic banks (temporarily excluding domestic receipts and payments in RMB between individual residents and non-resident individuals). Data are collected when customers conduct receipts and payments with non-resident counterparties at domestic banks. Specifically, the receipts refer to the capital of non-banking sectors received from non-residents via domestic banks; the payments refer to the capital of non-banking sectors paid to non-residents via domestic banks. 2023-10-20/en/2023/1020/2138.html
-
On October 13-14, 2023, the International Monetary and Financial Committee (IMFC) convened its 48th meeting in Marrakech, Morocco, and discussed issues regarding the global economic and financial landscape and the work of the International Monetary Fund (IMF). Pan Gongsheng, the PBOC Governor and SAFE Administrator attended the meeting and delivered remarks. Deputy Governor Xuan Changneng also attended the meeting. The meeting was of the view that the global economy has been resilient but the recovery has been slow and uneven. Current policy priorities are to durably reduce inflation, safeguard financial stability, ensure fiscal sustainability while protecting the most vulnerable, and boost inclusive and sustainable long-term growth. The participants reaffirmed commitment to a strong, quota-based, and adequately resourced IMF at the center of the global financial safety net, and commit to concluding the 16th General Review of Quotas in a timely manner. The meeting supports IMF's efforts to help countries durably address debt vulnerabilities, and welcomes the review and reform of IMF's lending facilities. Governor Pan pointed out that the Chinese economy has continued to recover and has generally been on an upward trajectory this year. Recently, positive factors and highlights in the Chinese economic performance are on the rise, and expectations have improved. The growth rates of manufacturing and service sectors went up, while the recovery of market sales accelerated, investment in fixed assets continued to grow, and investment in high-tech industries maintained fast growth. Going forward, China will pay more attention to the balance between economic growth and sustainability, and actively promote high-quality and sustainable development while maintaining a reasonable growth rate. Governor Pan stated that China has implemented a sound monetary policy in a targeted and forceful manner, and enhanced counter-cyclical adjustments. By so doing, China has effectively addressed risks and challenges at home and abroad, and reinforced the momentum of economic recovery. The PBOC will continue its efforts, ride on the momentum to intensify macro adjustments, and give full play to the role of monetary policy instruments in adjusting both the aggregate and the structure. It will also focus on expanding domestic demand, boosting confidence, and expediting a virtuous circle of the economy so as to provide stronger support for the real economy. Governor Pan stressed that, China always believes that the quota reform of the IMF is supposed to achieve quota increase and realignment, in order to show the quota-based nature of the IMF, reflect members' relative positions in the global economy, and strengthen the voice and representation of emerging markets and developing countries. China supports the IMF's efforts to promote the channeling of Special Drawing Rights (SDRs). China has implemented the G20 Debt Service Suspension Initiative (DSSI) in a responsible manner, and will work with other parties to make further progress. Collective action and fair burden sharing are required to solve sovereign debt issues. Multilateral Development Banks (MDBs) should bear their shares of contribution, and the private sector creditors should participate in a comparable manner. The IMF, as a key multilateral financial institution, should continue to call for the removal of arbitrary restrictions on trade, investment, and supply chains as soon as possible, prevent global economic and financial fragmentation, and promote more just and equitable global governance. 2023-10-14/en/2023/1014/2137.html
-
The fourth meeting of G20 Finance Ministers and Central Bank Governors (FMCBG) was held in Marrakech, Morocco on 12-13 October 2023 during the International Monetary Fund Annual Meetings. The meeting focused on issues including promoting global economic recovery, improving the regulation of crypto assets and strengthening Multilateral Development Banks (MDBs). Pan Gongsheng, the Governor of the People’s Bank of China (PBC) and the Administrator of the State Administration of Foreign Exchange, delivered remarks in the meeting. Deputy Governor Xuan Changneng also attended the event. The overall assessment of Ministers and Governors was that the global economic recovery momentum subdued with increasing uncertainties. The Ministers and Governors agreed to strengthen macroeconomic policy coordination and work together to promote growth and maintain macroeconomic and financial stability. Members agreed to implement the G20 Common Framework for Debt Treatments. The meeting endorsed the 2023 G20 Sustainable Finance Report and called for further efforts to advance the G20 Sustainable Finance Roadmap, including, among others, the implementation of the G20 Transition Finance Framework. The Ministers and Governors agreed to strengthen international coordination on crypto assets regulation, and encouraged MDBs to improve operating models and increasing financing capacities. Governor Pan Gongsheng introduced China’s economic and financial developments, emphasizing that China’s economic recovery is gaining momentum as recent economic indicators continue to improve on the back of growing supportive factors, and the transition of economic growth model has seen positive progress. The PBC will implement a sound monetary policy in a targeted and effective manner to provide stronger support for the real economy. Governor Pan pointed out that the G20 should strengthen coordination and address the spillover effects of monetary policy adjustments in major advanced economies to emerging market economies and developing countries. He noted that, as co-chair of the G20 Sustainable Finance Working Group, the PBC will continue to advance sustainable finance with members. 2023-10-13/en/2023/1013/2133.html
-
The State Administration of Foreign Exchange (SAFE) recently released data on China’s external debt as of the end of June 2023. Wang Chunying, SAFE’s Deputy Administrator and Press Spokesperson, addressed media questions regarding this matter. Q: Could you brief us on China’s external debt in the second quarter of 2023? A: In the second quarter of 2023, China’s external debt scale decreased, while its structure remained relatively stable. As of the end of June 2023, the total outstanding external debt (comprising domestic and foreign currencies) stood at USD 2433.8 billion. This marked a decrease of USD 57.1 billion, equivalent to a 2% decline from the end of March 2023. With respect to currency structures, the outstanding external debt denominated in domestic currency constituted 44% of China’s total external debt, representing a 1 percentage point decrease from the end of March 2023. In terms of maturity structure, medium- and long-term external debt made up 44%, unchanged from the end of March 2023. Q: What would you say about China’s external debt situation? A: The decline in external debt was mainly due to the factor of exchange rate translation. In the second quarter of 2023, the decrease of USD 54.5 billion in external debt was predominantly driven by exchange rate translation, accounting for approximately 95% of the decline in outstanding foreign debt. China’s external debt level is expected to exhibit stability. With major developed economies nearing the conclusion of their monetary policy tightening cycles, a reduction in spillover effects is anticipated. China’s economy retains its resilience, substantial potential, and vitality, and its robust long-term economic fundamentals remain intact. As the effects of macroeconomic policies materialize, the domestic economy is foreseen to maintain its positive recovery trajectory. The foundation for maintaining a stable external debt scale remains strong. 2023-09-28/en/2023/0928/2140.html
-
According to the statistics of the State Administration of Foreign Exchange (SAFE), by the end of September 2023, China’s foreign exchange reserves registered USD 3115.1 billion, down by USD 45 billion, or 1.42%, from the end of August. In September 2023, influenced by the monetary policies and expectations of major economies, global macroeconomic data, and other factors, the US dollar index rose, and the prices of global financial assets declined in general. China’s foreign exchange reserves declined this month due to the combined effects of currency translation and asset price changes. China’s economy is on a path of recovery and exhibits promising progress, especially in terms of high-quality development. This favorable trend contributes to maintaining the essential stability of foreign exchange reserves. 2023-10-07/en/2023/1007/2139.html