In 2021, my country’s foreign exchange receipts and payments will be stabilized, and banks will show a “double surplus” in foreign exchange settlement and sales_Wang Chunying_Investment and financing_Cross-border


Home » Economy » In 2021, my country’s foreign exchange receipts and payments will be stabilized, and banks will show a “double surplus” in foreign exchange settlement and sales_Wang Chunying_Investment and financing_Cross-border January 22, 2022

Original title: In 2021, my country’s foreign currency receipts and payments will stabilize and banks will show a “double surplus” in foreign currency settlements and sales

On January 21, the State Council Information Office held a press conference in Beijing, inviting Wang Chunying, deputy director of the State Administration of Foreign Exchange and spokesperson, to present the data on foreign currency receipts and payments in 2021 and to answer questions from journalists. Photo by Xinhua News Agency reporter Jin Liangkuai

“My country’s foreign exchange market is generally stable, and the RMB exchange rate remains basically stable at a reasonable and balanced level.” Wang Chunying, deputy director of the State Administration of Foreign Exchange and spokesperson, said on the 21st that in 2021, cross-border capital flows from my country will be reasonable and orderly, and the scale of foreign exchange reserves will be globally stable.

Wang Chunying made the above remarks at a press conference of the State Council Information Office on the same day.

Judging from the data disclosed at the press conference on the same day, in 2021, banks’ foreign exchange settlements and sales and overseas related receipts and payments on behalf of customers will show a “double surplus”. In 2021, banks’ foreign currency sales and settlement transactions will total 4.9 trillion US dollars, and the scale of banks’ foreign-related receipts and payments on behalf of customers will be 11.7 trillion US dollars. US dollars, an increase of 24% and 35% respectively over 2020. In 2021, banks will have a surplus of US$267.6 billion in foreign exchange settlements and sales, and a surplus of US$356.4 billion in foreign-related receipts and payments by banks on behalf of customers.

“Foreign-related transactions remain active and cross-border capital flows in an orderly fashion.” Wang Chunying believes that this is mainly due to the fact that my country’s epidemic prevention and control and economic recovery have maintained a leading position in the world, and that trade in goods and various investment and financing activities generally maintained a high level of activity.

In 2021, affected by some factors such as changes in the international financial environment, the exchange rate of the RMB against the US dollar will fluctuate in both directions. Against this background, the foreign exchange hedging rate of Chinese enterprises has steadily increased and the awareness of enterprises’ risk neutrality has increased. Data shows that in 2021, the scale of companies using foreign exchange derivatives such as futures and options to manage currency risks will increase by 59% year-over-year, or 36 percentage points percent higher than the growth rate of foreign exchange settlement and sales by banks over the same period, resulting in an increase in the corporate coverage ratio of 4.6 percentage points year-on-year. 21.7%.

It should be noted that against the background of the current account surplus and the overall inflow of foreign capital, my country’s foreign investment, especially private sector foreign investment, has increased accordingly. In the first three quarters of 2021, private sector foreign investment will increase by $489 billion, including $85.4 billion in foreign direct investment. Domestic residents have made nearly $100 billion in overseas securities investments through the Southbound Stock Connect and QDII channels. Investments other than direct and portfolio investments exceeded $310 billion.

“Cross-border capital flow from domestic enterprises, financial institutions and other private sectors has both inflows and outflows, forming an independent international balance of payments pattern.” said Wang Chunying.

Speaking of my country’s foreign exchange receipts and payments situation in 2022, Wang Chunying analyzed that, on the one hand, uncertain factors such as the epidemic may continue to exist, but the gradual recovery of the economy world after the epidemic remains a general trend. This will make cross-border capital flows from my country more stable and sustainable”; on the other hand, the long-term trend of national fundamentals is stable and improving, and my country will continue to coordinate epidemic prevention and control and economic and social development, and the two-way opening of the financial market will make steady progress , these will create a very favorable policy environment for a stable and balanced flow of cross-border capital.

“Based on the analysis of the above two aspects, my country’s foreign exchange market is expected to show a generally stable and more balanced development trend in 2022.” said Wang Chunying.

In 2021, my country's foreign currency receipts and payments will be stabilized and banks will show a

Chart: In 2021, my country’s foreign currency receipts and payments will stabilize the foreign currency settlement and sales of banks with a “double surplus”. Xinhua News Agency published a map of Song Bo

Source: Xinhuanet

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