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On September 1, 2023, Pan Gongsheng, the PBOC Governor and SAFE Administrator, met with Kristalina Georgieva, Managing Director of the International Monetary Fund (IMF). They exchanged views on issues including global and Chinese economic developments as well as the cooperation between China and the IMF. 2023-09-01/en/2023/0901/2114.html
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Selected Transactions in the Chinese Foreign Exchange Market in 2020 (in RMB) Selected Transactions in the Chinese Foreign Exchange Market in 2020 (in USD) 2021-01-29/en/2019/0920/1562.html
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In August 2019, China’s international trade in goods and services recorded receipts of RMB 1621.6 billion and payments of RMB 1506.5 billion based on statistics of balance of payments (BOP), registering a surplus of RMB 115.1 billion. Specifically, trade in goods registered receipts of RMB 1487.3 billion,payments of RMB 1186.7billion, recording a surplus of RMB 300.6 billion; trade in services recorded receipts of RMB 134.3billion,payments of RMB 319.8billion, resulting in a deficit of RMB 185.5billion. In the US dollar terms, in August 2019, China's BOP-based receipts and payments of international trade in goods and services were USD 231billion and USD 214.6billion respectively, registering a surplus of USD 16.4 billion. Specifically, the receipts and payments from trade in goods were USD 211.8billion and USD 169billion respectively, resulting in a surplus of USD 42.8billion. Trade in services registered receipts and payments of USD 19.1 billion and USD 45.5 billion respectively, recording a deficitof USD 26.4 billion. (End) International Trade in Goods and Services of China (Based on the BOP statistics) August 2019 Item In 100 million of RMB In 100 million of USD Goods and services 1,151 164 Credit 16,216 2310 Debit -15,065 -2146 1. Goods 3,006 428 Credit 14,873 2118 Debit -11,867 -1690 2. Services -1,855 -264 Credit 1,343 191 Debit -3,198 -455 2.1 Manufacturing services on physical inputs owned by others 85 12 Credit 87 12 Debit -3 0 2.2 Maintenance and repair services n.i.e 18 3 Credit 40 6 Debit -22 -3 2.3 Transport -415 -59 Credit 266 38 Debit -681 -97 2.4 Travel -1,436 -205 Credit 196 28 Debit -1,632 -232 2.5 Construction 28 4 Credit 92 13 Debit -64 -9 2.6 Insurance and pension services -29 -4 Credit 28 4 Debit -58 -8 2.7 Financial services 8 1 Credit 19 3 Debit -12 -2 2.8 Charges for the use of intellectual property -182 -26 Credit 32 5 Debit -214 -30 2.9 Telecommunications, computer and information services 16 2 Credit 183 26 Debit -167 -24 2.10 Other business services 112 16 Credit 387 55 Debit -275 -39 2.11 Personal, cultural, and recreational services -15 -2 Credit 4 1 Debit -19 -3 2.12Government goods and services n.i.e -44 -6 Credit 9 1 Debit -53 -7 Notes: 1. The trade in goods and services in this table refers to the transactions between residents and non-residents, based on the same standard as that for BOP statement. The monthly dataare preliminary and may be inconsistent with the quarterly data in the BOP statement. 2. The data on international trade in goods and services are prepared in USD, and the RMB data for the current month is derived by converting the USD data at the monthly average central parityrate of the RMB against the USD. 3. This table employs rounded-off numbers. Definition of Indicators: Goods and Services: refers to the trade in goods and services between residents and non-residents, which is based on the samestandard as that for the BOP statement. 1. Goods:refers to transactions in goods whereby the economic ownership is transferred between the Chinese residents and non-residents. The credit side records export of goods, while the debit side records import of goods. The data of goods account are mainly from the customs statistics of imports and exports, butdiffer from the statistics of the customs mainly in the following aspects:first, the goods in the BOP statement only reflect the goods whose ownership has been transferred (e.g. goods under the trade modes such as general tradeand processing trade with imported materials), while the goods whose ownership is not transferred (e.g. manufacturing services with suppliedmaterials or with exported materials) are included in the statistics of tradein services instead of the statistics of trade in goods; second, as required by the BOP statistics, the goods imported and exported are valued on the FOB basis, but as required by the customs, the goods exported are valued on the FOBbasis, whereas goods imported are on the CIF basis. Therefore, for the purpose of the BOP statistics, the international transport and insurance premiums aretaken out from the value of imported goods and included in the trade inservices; and third, the data on net export of goods in merchanting which arenot included in the customs statistics are supplemented. 2. Services:includes manufacturing services on physical inputs owned by others,maintenance and repair services n.i.e, transport, travel,construction, insurance and pension services, financial services, charges forthe use of intellectual property, telecommunications, computer and information services, other business services, personal, cultural and recreational services, and government goods and services n.i.e. The credit side recordsservices supplied, while the debit side records services received. 2.1 Manufacturing services on physical owned by others: processor only provides processing, assembly, packaging and other services and charges service fee from the owner, while the ownership of the goods isnot transferred between the owner and the processor. The credit side recordsthe manufacturing services supplied by the Chinese residents on physical inputs owned by non-residents, and vice versa for debitside. 2.2 Maintenance and repair services: referto the maintenance and repair services supplied by residents to non-residentsor vice versa on goods and equipment (such as vessel, aircraft, and other transportation facility) owned by the receiving party. The credit side recordsthe maintenance and repair services supplied by the Chinese residents tonon-residents, andvice versa for debit side. 2.3 Transport:refers to the process of transporting people and goods from one place toanother, and the relevant supporting and auxiliary services, as well as postaland delivery services. The credit side records the international transport,postal and delivery services supplied by residents to non-residents, and vice versa for debitside. 2.4 Travel:refers to goods consumed and services purchased by travelers in various economies as non-residents. The credit side records the goods and servicesprovided by the Chinese residents to non-residents who have stayed in China forless than one year, as well as non-residents studying abroad and seeking medical treatment for indefinite period of stay. The debit side records thegoods and services purchased by the Chinese residents when traveling, studyingor seeking medical services abroad from non-residents. 2.5 Construction services:refer to the establishment, renovation, maintenance or expansion of fixedassets in the form of buildings, land improvement, roads, bridges and dams andother engineering buildings of engineering nature, relevant installation,assembly, painting, pipeline construction, demolition and project management,as well as site preparation, measurement and blasting and other specialservices. The credit side records the construction services provided by theChinese residents outside the economic territory. The debit side records theconstruction services received by the Chinese residents in the Chinese economicterritory from non-residents. 2.6 Insuranceand pension services: refers to various insurance services and commission to agents related with insurancetransaction. The credit side records the life insurance and annuity, non-lifeinsurance, reinsurance, standardized guarantee services and relevant supportingservices supplied by the Chinese residents to non-residents, and vice versa for debitside. 2.7 Financialservices: refer to financial intermediation and supporting services, excluding those covered by insurance and pensionservices. The credit side records the financial intermediation and supporting services supplied by the Chinese residents to non-residents, and vice versa for debit side. 2.8 Charges for the use of intellectual property:refer to licensed use of intangible, non-productive / non-financialassets and exclusive rights between residents and non-residents and thelicensed use of existing original works or prototypes. The credit side recordsthe intellectual property-related services supplied by the Chinese residents tonon-residents, andvice versa for debit side. 2.9 Telecommunications, computer andinformation services: refer to communications services between residents and non-residents and transactions ofservices related to computer data and news, excluding commercial services delivered via telephone, computer and Internet. The credit side records the telecommunications, computer and information services supplied by residents tonon-residents, andvice versa for debit side. 2.10 Other business services: refer to other types of services between residents and non-residents, including researchand development services, professional and management consulting services,technical and trade-related services. The credit side records the otherbusiness services supplied by the Chinese residents to non-residents, and vice versa fordebit side. 2.11 Personal,cultural and recreational services: referto transactions of personal, cultural and recreational services between residents and non-residents, including audiovisual and related services (films,radio, television programs and music recordings) and other personal, culturaland recreational services (health, education, etc.). The credit side records the related services supplied by the Chinese residents to non-residents, and vice versa for debitside. 2.12 Governmentgoods and services n.i.e: refer tovarious goods and services provided and purchased by governments andinternational organizations not included in other categories of goods and services. The credit side records the goods and services not included elsewhere and supplied by the Chinese residents to non-residents, and vice versa for debit side. 2019-09-26/en/2019/0926/1564.html
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As shown in the statistics of the State Administration of ForeignExchange (SAFE), in August 2019, the amount of foreign exchange settlement andsales by banks was RMB 1201.3 billion (equivalent to USD 171.1 billion) and RMB1239.1 billion (equivalent to USD 176.5 billion), respectively, with a deficitof RMB 37.8 billion (equivalent to USD 5.4 billion). In particular, the amountof foreign exchange settlement and sales by banks for customers was RMB 1055.5billion and RMB 1078.5 billion, respectively, with a deficit of RMB 23 billion;the amount of foreign exchange settlement and sales for banks themselves is RMB145.9 billion and RMB 160.7 billion, respectively, with a deficit of RMB 14.8billion. During the period, newly signed contract amount of forward foreign exchangesettlement and sales was RMB 169.7 billion and RMB 92 billion, respectively,with a net newly signed contract amount of forward foreign exchange settlementof RMB 77.8 billion. At the end of August, outstanding amount of forwardforeign exchange settlement and sales by the end of the current period was RMB 508.9billion and RMB 498.3 billion, respectively, with a net outstanding amount of forwardforeign exchange settlement of RMB 10.6 billion; the net Delta exposure ofoutstanding options was RMB -260.3 billion. During January to August 2019, the accumulative amount of foreignexchange settlement and sales by banks was RMB 8333.7 billion (equivalent toUSD 1220.4 billion) and RMB 8638.6 billion (equivalent to USD 1265.2 billion),with an accumulative deficit of RMB 304.9 billion (equivalent to USD 44.7billion). In particular, the accumulative amount of foreign exchange settlementand sales by banks for customers was RMB 7707.3 billion and RMB 7927.1 billion,respectively, with an accumulative deficit of RMB 219.8 billion; theaccumulative amount of foreign exchange settlement and sales for banksthemselves was RMB 626.5 billion and RMB 711.6 billion, respectively, with anaccumulative deficit of RMB 85.1 billion. During the period, newly signedcontract amount of forward foreign exchange settlement and sales was RMB 1056.8billion and RMB 374.9 billion, respectively, with a net newly signed contractamount of forward foreign exchange settlement of RMB 681.9 billion. In August2019, the amount of cross-border receipts and payments by non-banking sectorswas RMB 2035.3 billion (equivalent to USD 289.9 billion) and RMB 2206.1 billion(equivalent to USD 314.2 billion), respectively, with a deficit of RMB 170.8 billion(equivalent to USD 24.3 billion). DuringJanuary to August 2019, the amount of cross-border receipts and payments by non-bankingsectors was RMB 15880.7 billion (equivalent to USD 2327.4 billion) and RMB 15855.0billion (equivalent to USD 2322.6 billion), respectively, with a surplus of RMB25.8 billion (equivalent to USD 4.8 billion). Addendum:Glossary and relevant definitions Balance of payments(BOP) refers to all economic transactionsbetween residents and non-residents. Foreignexchange settlement and sales by banks refers to settlement and sale transaction that bank executes for customersand for the banks themselves, including statistic data onsettlements of forward contracts for foreign exchange settlementand sales and the exercises of option, and excludingthe transactions in the interbank foreign exchange market. The statistic reporting date of Foreign exchangesettlement and sales by banks should be the trade day of theForeignexchange settlement and sales transaction. By definition, foreignexchange settlement means foreign exchange holders sell foreignexchange to designated foreign exchange bank, and foreignexchange sales means designated bank sells foreign exchange to foreign exchange buyers. The net position of foreign exchange settlement andforeign exchange sales could be position squared throughtransactions on the inter-bank foreign exchange market, and it is one ofthe major contributors to the country’sforeign exchange reserve fluctuation, though it is not equal to netchange in foreign exchange reserves during the same period Unlikethe principle of balance-of-payments statistics, which cover the transactionsbetween residents and non-residents, foreign exchange settlement and sales bybanks only cover transactions of RMB and foreign currencies between banks and customers or on banks for themselves. Thenewly signed contract amount of forward foreign exchange settlement and sales refers to the binding forward contract between designated foreignexchange bank and client that predetermines foreign exchange currency, amount,exchange rate and tenor which to be executed upon maturity. Thenewly signed forward contract enables corporate to lock inadvance the exchange rate for the purchase or sale of a currency on a futuredate to manage relevant foreign exchange risk arising fromRMB volatility. In general, bank will hedge its foreign exchange risk exposures arise from the newly signed forward contract in the Interbank foreign exchange market. For example,when bank has net foreign exchange long position, bankwill short the equivalent amount of foreign exchange in the Interbank foreignexchange market in advance, or vice versa. Therefore, the newly signedcontract amount of forward foreign exchange settlement and sales is also one of contributors to China’s foreign exchange reserve fluctuation. Theunwind amount of forward foreign exchange settlement and sales refers to, where client is unable to perform the original forwardcontract due to change in its real demand, client to fully or partially closeits forward position by executing another deal with opposite direction to theoriginal contract. Therolling amount of forward foreign exchange settlement and sales refers to client to adjust the settlement date of original contract dueto change in its real demand. Theoutstanding amount of forward foreign exchange settlement and sales by the endof the current period refers to the total amount of forwardcontracts accumulated from all non-matured forward contracts with client. Thenewly signed contractamount and the outstanding amount should satisfy the equationthat: theoutstanding amount of forward foreign exchange settlement and sales by the endof the current period = theoutstanding amount of forward foreign exchange settlement and sales at the endof the previous period + the newly signed contract amount of forward foreignexchange settlement and sales for the period - settlements of forwardcontracts for foreign exchange settlement and sales for the period - the unwindamount of forward foreign exchange settlement and sales for the period. The net Deltaexposure of outstanding options refers to the implied foreignexchange spot risk exposure from outstanding option contracts that bank executedwith client. Bank shall hedge such risk in the foreign exchange market for risk management during deal life cycle. The cross-borderreceipts and payments bynon-banking sectors refers to the receipts andpayments between domestic non-banking sectors (including institutional and individual residents)and non-residentsthrough domestic banks, excluding receipts and payments in cash. In particular,the statisticsincludescross-border receipts and payments between non-banking sectors andnon-residents through domestic banks (including RMB and foreign currency), and domesticreceipts and payments between non-banking sectors and non-residents throughdomestic banks (temporarily excluding domestic receipts and payments in RMBbetween individual residents and non-resident individuals). Data are collected whencustomers conduct receipts and payments with non-resident counterparties atdomestic banks. Specifically, the receipts refer to the capitalof non-bankingsectors received fromnon-residents via domestic banks; the payments refer to the capitalof non-bankingsectors paid to non-residents via domestic banks. Thecross-border receipts and payments by non-banking sectors is based on cash basis,different from the accrual basis required by the Balance of Payments Statistics. The statisticsmerely reflects the cashflows between non-banking sectors and non-residents and does not include bartertransactions or transactions with non-residents conducted by the banksthemselves. Therefore,the scope of thestatistics is narrower than that of the Balance of Payments Statistics. 2019-09-19/en/2019/0919/1558.html
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Q: According to the latest foreign exchange reserves data disseminated by the State Administration of Foreign Exchange, could you brief us on the causes of the changes for July 2019? What would you say about the future trends? A: By the end of July 2019, China's foreign exchange reserves amounted to USD 3.1037 trillion, up by USD 31 billion or 1% from the beginning of the year. China's foreign exchange market remained stable in July. In the global financial markets, due to the impacts from global trade situations, central banks' monetary policies in major countries, the prospects of Brexit and geopolitics, the exchange rates of major currencies against the dollar declined and the bond indexes increased. The foreign exchange reserves were affected by a combination of factors, e.g., foreign exchange rate conversions and asset price changes. In the year to date, despite heightening risks and challenges from global markets, China's economy has grown steadily, with major macroeconomic indicators falling within the reasonable ranges. As a result, China has witnessed stable cross-border capital flows, supply-demand balance in the domestic foreign exchange market and steady foreign exchange reserves with normal monthly fluctuations. Going forward, the global political and economic environments will remain challenging and trade protectionism and populism will rise, which will pose heavier downside pressure on the world economy and lead to more fluctuating financial markets. But as China's fundamentals stay robust and real economic sectors and financial markets feature strong resilience and potential, China will withstand external shocks and continue to advance reform and opening up in all respects, which will underpin the overall stability of its foreign exchange reserves. 2019-08-07/en/2019/0919/1556.html
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Q: According to the latest foreign exchange reserves data disseminated by the State Administration of Foreign Exchange, China's foreign exchange reserves for August 2019 rose by USD 3.5 billion month-on-month. Could you brief us on the causes of the changes? What would you say about the future trends? A: By the end of August 2019, China's foreign exchange reserves amounted to USD 3.1072 trillion, up by USD 3.5 billion or 0.1% month on month, and by USD 34.5 billion or 1.1% from the beginning of the year. In the month, China's foreign exchange market was in a good order, with supply and demand reaching a basic equilibrium. Due to the impacts from global economic growth, trade situations and geopolitics, the US Dollar Index went up slightly and bond prices in major countries climbed. The foreign exchange reserves rose under the impact of a combination of factors, e.g., foreign exchange rate conversions and asset price changes. In the year to date, in the face of complex and challenging external environment, China has witnessed stable economic growth, stronger steadiness and resilience, and constant optimization of the economic structure. Therefore, China posted stable balance of payments and steady increase in foreign exchange reserves. Going forward, the world economy and global financial markets will face heightening risks and challenges. But with great leeway for growth, strong dynamics and vibrancy, China's economy will remain robust in the long run, and it will continue to advance the reform and opening up in all respects, which will lay a solid foundation for the stability of China's foreign exchange reserves. 2019-09-07/en/2019/0907/1555.html
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As at the end of June 2019, China's banking sector recorded external financial assets of USD 1145.9 billion, external liabilities of USD 1343.0 billion, and net external liabilities of USD 197.1 billion including net RMB liabilities of USD 318.1 billion and net foreign currency assets of USD 121.0 billion. Among the external financial assets of the banking sector, deposits and loans were USD 831.9 billion,bonds investment, USD 154.1billion, and other assets including equity, USD 159.8 billion, accounting for 73 percent, 13 percent and 14 percent of the sector's total external financial assets respectively. By currency, RMB assets were USD 112.5billion, USD assets, USD 791.2 billion, and other currency assets, USD 242.1billion, accounting for 10 percent, 69 percent and 21 percent respectively. Among the external financial assets of the banking sector, the amount invested in the overseas banking sector was USD 570.4 billion, accounting for 50 percent; the amount invested in the overseas non-banking sector was USD 575.5 billion, accounting for 50 percent. Among the external liabilities of the banking sector, deposits and loans were USD 738.3 billion, bonds investment, USD 213.9 billion, and other liabilities including equity, USD 390.7 billion, accounting for 55 percent, 16 percent and 29 percent of the sector's total external liabilities respectively. By currency, RMB liabilities were USD 430.6billion, USD liabilities, USD 538.2 billion, and other currency liabilities, USD 374.2billion, accounting for 32 percent, 40 percent and 28 percent respectively. Of the external liabilities of China’s banking sector, USD 554.9 billion was from overseas banking sector, accounting for 41 percent; whileUSD 788.1billion was from overseas non-banking sector, accounting for 59 percent. (End) 2019-09-26/en/2019/0926/1565.html
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External_Financial_Assets_and_Liabilities_of_China's_Banking_Sector_(As_of_June_30_2019) 2019-09-26/en/2019/0926/1566.html
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According to the statistics of the State Administration of Foreign Exchange (SAFE), the Chinese foreign exchange market (excluding foreign currency pairs, the same below) recorded total transaction of RMB 18.14 trillion (equivalent to USD 2.58 trillion) in August 2019. Specifically, the transaction volume of the bank to client market was RMB 2.80 trillion(equivalent to USD 399.3 billion), the transaction volume of interbank market was RMB 15.34 trillion (equivalent to USD 2.18 trillion), the cumulative transaction volume of the spot market was RMB 7.57 trillion (equivalent to USD 1.08 trillion), and that of the derivatives market was RMB 10.57 trillion (equivalent to USD 1.51 trillion). From January to August 2019, a total of RMB 138.81 trillion (equivalent to USD 20.35 trillion) was traded in the Chinese foreign exchange market. 2019-09-20/en/2019/0920/1563.html
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The State Administration of Foreign Exchange (SAFE) has recently convened the 2022 National Foreign Exchange Administration Work Conference via video. At the conference, participants thoroughly studied and implemented the spirit of the Sixth Plenary Session of the 19th Central Committee of the Communist Party of China (CPC) and the Central Economic Work Conference, summarized the foreign exchange administration work in 2021, analyzed the current foreign exchange situation, held discussions and made arrangements for the key tasks for 2022. Pan Gongsheng, Secretary of the CPC Leadership Group and Administrator of the SAFE, delivered a work report. Members of the CPC Leadership Group of the SAFE and the Chief Accountant also attended the conference. According to the conference, in the year of 2021, the SAFE adhered to the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, and earnestly implemented the decisions and arrangements of the CPC Central Committee and the State Council; under the specific guidance of the Financial Stability and Development Committee under the State Council, the SAFE coordinated development and safety by ensuring “stability on the six fronts” and “security in the six areas”, and constantly promoted the reform and opening-up of the foreign exchange sector as well as the modernization of management system and governance capacity; besides, the SAFE maintained basic stability of the foreign exchange market and China’s economic and financial security, ensuring a good start of the 14th Five-Year Plan. First, the SAFE constantly improved the liberation and convenience of cross-border trade and investment. To this end, the SAFE launched pilot projects on higher level of opening-up in foreign trade and investment, expanded the scale and improved the quality of pilot projects of cross-border trade payment facilitation, and promoted the healthy development of new forms and models of foreign trade. At the meantime, the SAFE supported private equity funds in making cross-border industrial investments, launched a pilot cash-pooling service integrating domestic and foreign currency management for multinational corporations, and enriched the application scenarios of cross-border financial service platforms. Besides, the SAFE further facilitated individuals’ use of foreign exchange and actively prepared for the entry into force of the Regional Comprehensive Economic Partnership (RCEP). Second, the SAFE achieved positive results in preventing and controlling cross-border capital flow risks. To this end, the SAFE strengthened macro-prudential management and expectation management, and encouraged enterprises to use exchange rate hedging tools more extensively. Meanwhile, the SAFE also improved the off-site supervision capabilities, severely cracked down on illegal activities in the foreign exchange sector, and maintained a healthy order in the foreign exchange market. Third, the SAFE constantly improved the operation and management of foreign exchange reserves, and the volume of China’s foreign exchange reserves remained stable at around US$3.2 trillion. Fourth, the SAFE made further efforts in exercising full and strict governance over the Party. The SAFE made solid progress in learning and education of the Party’s history, further promoted the practical activities by the name of “I do practical work for the masses”, and launched a series of activities to celebrate the 100th anniversary of the founding of the CPC. In addition, the SAFE, actively cooperated in the discipline inspections by the CPC Central Committee, further strengthened work style construction and enhanced the awareness of discipline and law among the Party members and cadres. The conference stressed that, in the year of 2022, foreign exchange administration will follow the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, and fully implement the guiding principles from the 19th CPC National Congress and each plenary session of the 19th CPC Central Committee, as well as the arrangements made at the Central Economic Work Conference. The SAFE will enhance the “Four Consciousnesses”, affirm the “Four Matters of Confidence”, and ensure the “Two Upholds”, correctly understand and grasp major theoretical and practical issues in the new development stage. The SAFE will prioritize stability while pursuing progress, fully apply the new development philosophy, and integrate into the new development paradigm. In addition, the SAFE will coordinate development and security by maintaining the steady operation of the foreign exchange market and the proper scale of foreign exchange reserves, and deepening reform and opening-up in the foreign exchange sector for the stability of the macro-economy. The SAFE will also strive to maintain a healthy order in the foreign exchange market by further ensuring “stability on the six fronts” and “security in the six areas”, so as to promote the high-quality economic development, and welcome the successful convening of the 20th National Congress of the CPC with outstanding achievements. The conference outlined key tasks for foreign exchange administration in 2022. First, the SAFE will make further efforts to exercise full and strict governance over the Party. To be specific, the SAFE will further understand the decisions of the CPC on Comrade Xi Jinping’s core position on the Party Central Committee and in the Party as a whole and the guiding role of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era. The SAFE will comprehensively improve the quality of Party building under the leadership of the Party’s political construction, implement the people-centered philosophy of development, and continuously consolidate and expand the achievements in learning and education of the Party’s history. The SAFE will also resolutely rectify the problems discovered by the discipline inspection, and turn the rectification results into a powerful driving force for the high-quality development of foreign exchange administration. In addition, the SAFE will encourage the branch offices to strictly implement the principle of “two duties for one post”, and build a contingent of competent and professional officials who are loyal, honest and responsible. Second, the SAFE will guard against and defuse the risks of external shocks. To be specific, the SAFE will enhance the monitoring, research and judgment of the foreign exchange market and macro-prudential management, strengthen risk prevention and control in key areas of foreign exchange, and maintain the stable operation of the foreign exchange market. Third, the SAFE will deepen reform and opening-up in the foreign exchange sector. To be specific, the SAFE will steadily promote the high-level opening-up of the capital account, expand the pilot cash-pooling service integrating domestic and foreign currency management for multinational corporations, advance the pilot projects for cross-border investment of private equity funds, and accelerate the reform of external debt facilitation. The SAFE will develop an open, diversified, well-functioning and standardized foreign exchange market. The SAFE will deepen reform to facilitate foreign exchange management in traditional forms of trade, promote the standardized and innovative development of new forms of foreign trade, and improve foreign exchange services for individuals. The SAFE will also optimize foreign exchange services by focusing on small and medium-sized import and export enterprises, guide enterprises to better manage exchange rate risks, and expand the application scenarios of cross-border financial service platforms. Fourth, the SAFE will improve micro-regulation of the foreign exchange market. To be specific, the SAFE will improve the authenticity audit methods of banks’ foreign exchange business, and gradually establish a management mechanism featuring substantial truth, diversified methods, due diligence, as well as safety and high efficiency. The SAFE will strengthen cross-departmental cooperation and capacity building for off-site supervision, adhere to the cross-cycle consistency, stability and predictability of law enforcement standards for micro-regulation of the foreign exchange market, and crack down on violations of laws and regulations in the foreign exchange sector with “zero tolerance”. Fifth, the SAFE will improve the management of foreign exchange reserves. To be specific, the SAFE will ensure the safety and liquidity of foreign exchange reserve assets while maintaining and increasing their value, and promote capacity building in terms of professional investment, scientific and technological operation and management, and market-oriented institutional governance. Sixth, the SAFE will consolidate the foundation of foreign exchange administration. To be specific, the SAFE will strengthen the construction of the rule of law in the foreign exchange market, advance the revision of the Regulations on Foreign Exchange Administration, develop a high-level statistical system on the balance of payments, increase research efforts on key projects in the foreign exchange sector, and further promote the “digital foreign exchange administration” and “safe foreign exchange administration”. Leading officials of relevant departments, affiliated enterprises and institutions of the SAFE attended the conference at the main venue in Beijing. Attendees from each bureau (Foreign Exchange Management Department) participated in the conference at the branch venues. Relevant comrades from the Organization Department of the CPC Central Committee, Office of the Central Commission for Financial and Economic Affairs, General Office of the State Council, National Audit Office, those accredited to the Discipline Inspection and Supervision Team, and representatives of veteran cadres of the SAFE attended the conference upon invitation. (End) 2021-12-27/en/2021/1227/1915.html