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In the second quarter of 2023, China's current account registered a surplus of RMB 451.0 billion, and the capital and financial accounts recorded a deficit of RMB 353.6 billion. In the first half of 2023, China's current account registered a surplus of RMB 1008.5 billion, and the capital and financial accounts recorded a deficit of RMB 875.7 billion. In SDR terms, in the second quarter of 2023, China posted a surplus of SDR 48.2 billion under the current account, and a deficit of SDR 37.6 billion under the capital and financial accounts. In SDR terms, in first half of 2023, China posted a surplus of SDR 109.0 billion under the current account, and a deficit of SDR 94.5 billion under the capital and financial accounts. In the US dollar terms, in the second quarter of 2023, China's current account recorded a surplus of USD 64.7 billion, including a surplus of USD 163.3 billion under trade in goods, a deficit of USD 55.0 billion under trade in services, a deficit of USD 46.7 billion under primary income, and a surplus of USD 3.1 billion under secondary income. The capital and financial accounts recorded a deficit of USD 50.4 billion, including a deficit of USD 84 million under the capital account, a deficit of USD 34.1 billion under the financial account (excluding reserve assets), and an increase of USD 16.3 billion under reserves assets. In the US dollar terms, in the first half of 2023, China's current account recorded a surplus of USD 146.3 billion, including a surplus of USD 293.2 billion under trade in goods, a deficit of USD 102.2 billion under trade in services, a deficit of USD 53.3 billion under primary income, and a surplus of USD 8.5 billion under secondary income. The capital and financial accounts recorded a deficit of USD 126.7 billion, including a deficit of USD 77 million under the capital account, a deficit of USD 84.9 billion under the financial account (excluding reserve assets), and an increase of USD 41.7 billion under reserves assets. In addition, to facilitate understanding of China’s Balance of Payments and International Investment Position among all users, the BOP Analysis Team of SAFE released China’s Balance of Payments Report for the First Half of 2023 (in Chinese). (End) Abridged Balanceof Payments of China, Second Quarter of 2023 Item Line No. RMB 100 million USD 100 million SDR 100 million 1. Current Account 1 4510 647 482 Credit 2 65929 9397 7007 Debit 3 -61418 -8750 -6525 1. A Goods and Services 4 7602 1083 807 Credit 5 60672 8649 6449 Debit 6 -53070 -7566 -5641 1.A.a Goods 7 11464 1633 1218 Credit 8 55228 7873 5870 Debit 9 -43764 -6240 -4652 1.A.b Services 10 -3862 -550 -410 Credit 11 5443 776 579 Debit 12 -9305 -1326 -989 1.B Primary Income 13 -3311 -467 -349 Credit 14 4625 658 491 Debit 15 -7936 -1125 -840 1.C Secondary Income 16 219 31 23 Credit 17 632 90 67 Debit 18 -413 -59 -44 2. Capital and Financial Account 19 -3536 -504 -376 2.1 Capital Account 20 -6 -1 -1 Credit 21 2 0 0 Debit 22 -8 -1 -1 2.2 Financial Account 23 -3530 -503 -375 Assets 24 -2447 -340 -255 Liabilities 25 -1083 -164 -120 2.2.1 Financial Account Excluding Reserve Assets 26 -2390 -341 -254 2.2.1.1 Direct Investment 27 -2275 -322 -241 Assets 28 -2736 -389 -291 Liabilities 29 461 67 50 2.2.1.2 Portfolio Investment 30 -363 -59 -43 Assets 31 -983 -143 -106 Liabilities 32 620 84 63 2.2.1.3 Financial Derivatives (other than reserves) and Employee Stock Options 33 -310 -44 -33 Assets 34 -230 -32 -24 Liabilities 35 -80 -11 -8 2.2.1.4 Other Investment 36 557 84 62 Assets 37 2642 387 287 Liabilities 38 -2085 -303 -225 2.2.2 Reserve Assets 39 -1139 -163 -121 3. Net Errors and Omissions 40 -974 -143 -106 Notes: 1.The statement is compiled according to BPM6. Reserve assets are included in capital and financial accounts. 2."Credit" is presented as positive value while "debit" as negative value, and the balance is the sum of the "Credit" and the "Debit". All items herein refer to balance, unless marked with "Credit" or "Debit". 3.The RMB denominated quarterly BOP data is converted from the USD denominated BOP data, using period average central parity rate of RMB against USD. The quarterly accumulated RMB denominated BOP data is derived from the sum total of the RMB denominated data for the quarters. 4.The SDR denominated quarterly BOP data is converted from the USD denominated BOPdata, using period average exchange rate of SDR against USD. The quarterly accumulated SDRdenominated BOP data is derived from the sum total of the SDR denominated data for the quarters. 5.This statement employs rounded-off numbers. 6.For detailed data, please see "Data and Statistics" at the website of SAFE. 7.The BOP data is revised regularly; please find the latest data in "Data and Statistics". Abridged China’s Balance of Payments, First Half of 2023 Item Line No. RMB 100 million USD 100 million SDR 100 million 1. Current Account 1 10085 1463 1090 Credit 2 126925 18310 13660 Debit 3 -116840 -16847 -12570 1. A Goods and Services 4 13265 1910 1425 Credit 5 117054 16888 12599 Debit 6 -103789 -14977 -11173 1.A.a Goods 7 20354 2932 2188 Credit 8 105810 15264 11387 Debit 9 -85456 -12332 -9200 1.A.b Services 10 -7090 -1022 -762 Credit 11 11244 1623 1211 Debit 12 -18334 -2645 -1974 1.B Primary Income 13 -3768 -533 -399 Credit 14 8454 1218 909 Debit 15 -12222 -1751 -1307 1.C Secondary Income 16 589 85 63 Credit 17 1417 204 153 Debit 18 -828 -119 -89 2. Capital and Financial Account 19 -8757 -1267 -945 2.1 Capital Account 20 -5 -1 -1 Credit 21 8 1 1 Debit 22 -14 -2 -1 2.2 Financial Account 23 -8752 -1266 -945 Assets 24 -9275 -1338 -1000 Liabilities 25 523 72 55 2.2.1 Financial Account Excluding Reserve Assets 26 -5872 -849 -634 2.2.1.1 Direct Investment 27 -4282 -616 -460 Assets 28 -6151 -888 -663 Liabilities 29 1870 273 203 2.2.1.2 Portfolio Investment 30 -4220 -623 -464 Assets 31 -3588 -524 -391 Liabilities 32 -632 -99 -73 2.2.1.3 Financial Derivatives (other than reserves) and Employee Stock Options 33 -187 -26 -19 Assets 34 -175 -24 -18 Liabilities 35 -12 -1 -1 2.2.1.4 Other Investment 36 2817 415 309 Assets 37 3520 516 383 Liabilities 38 -703 -101 -74 2.2.2 Reserve Assets 39 -2880 -417 -311 3. Net Errors and Omissions 40 -1328 -195 -145 Notes: 1.The statement is compiled according to BPM6. Reserve assets are included in capital and financial accounts. 2."Credit" is presented as positive value while "debit" as negative value, and the balance is the sum of the "Credit" and the "Debit". All items herein refer to balance, unless marked with "Credit" or "Debit". 3.The RMB denominated quarterly BOP data is converted from the USD denominated BOP data, using period average central parity rate of RMB against USD. The quarterly accumulated RMB denominated BOP data is derived from the sum total of the RMB denominated data for the quarters. 4.The SDR denominated quarterly BOP data is converted from the USD denominated BOP data, using period average exchange rate of SDR against USD. The quarterly accumulated SDR denominated BOP data is derived from the sum total of the SDR denominated data for the quarters. 5.This statement employs rounded-off numbers. 6.For detailed data, please see "Data and Statistics" at the website of SAFE. 7.The BOP data is revised regularly; please find the latest data in "Data and Statistics". 2023-09-28/en/2023/0928/2125.html
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According to the statistics of the State Administration of Foreign Exchange (SAFE), by the end of August 2023, China’s foreign exchange reserves registered USD 3160.1 billion, down by USD 44.2 billion, or 1.38%, from the end of July. In August 2023, driven by factors such as global macroeconomic data and monetary policy expectations of major economies, the US dollar index surged, leading to a general decline in global financial asset prices. China’s foreign exchange reserves declined this month due to the combined effects of currency translation and asset price changes. Despite that, China continues to maintain a positive trend of recovery, characterized by strong resilience, great potential, and vitality in its economy. Its sound long-term economic fundamentals remain unchanged, which will support the overall stability of foreign exchange reserves. 2023-09-07/en/2023/0907/2130.html
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The Bank for International Settlements (BIS) held its bimonthly meetings of Governors in Basel, Switzerland on September 9-11. Pan Gongsheng, the PBOC Governor and SAFE Administrator, attended the meetings and was elected as a member of BIS Board of Directors. He exchanged views with other participating central bank governors on recent international economic and financial development, and issues concerning global financial stability. Deputy Governor Xuan Changneng also attended the meetings. 2023-09-12/en/2023/0912/2126.html
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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
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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
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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
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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
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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
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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
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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