Stable Operation of China’s Foreign Exchange Market in February 2024
People’s Daily Online, Beijing, March 15 (Reporter Du Yanfei) – The State Administration of Foreign Exchange announced on the 15th the data on bank foreign exchange settlement and sales and bank foreign-related receipts and payments on behalf of customers in February 2024. The data showed that in February 2024, China’s foreign exchange market was operating stably, with improvements in the situation and more stable cross-border capital flows.
According to the data, in February 2024, banks settled US$154 billion in foreign exchange and sold US$152.3 billion. Banks’ foreign-related income on behalf of customers was US$456.1 billion, while external payments were US$444 billion. From January to February 2024, the cumulative foreign exchange settlement by banks was US$358.2 billion, and the cumulative foreign exchange sales were US$366.4 billion.
Wang Chunying, deputy director and spokesperson of the State Administration of Foreign Exchange, stated that in February, cross-border receipts and payments of enterprises, individuals, and other non-bank sectors had a surplus of US$12.1 billion, an increase of US$6.6 billion from the previous month. The cross-border capital flows through major channels have been stable, with net capital inflows under trade in goods and securities investment remaining relatively high.
Speaking about the future trend of China’s foreign exchange market, Wang Chunying expressed optimism, stating that with the support of economic fundamentals, policy, and market factors, the foreign exchange market is expected to continue operating smoothly. The economic rebound, coupled with the country’s institutional opening up and improvements in the business environment, will contribute to the market’s stability.
Experts believe that as macro policies continue to be implemented and the domestic economy rebounds, China’s advantages in the market and industrial systems will attract international capital. The flexibility of the RMB exchange rate, coupled with increased awareness of exchange rate risk neutrality among entities, will help mitigate external shocks and maintain the smooth operation of the foreign exchange market.
In conclusion, the future looks promising for China’s foreign exchange market, with a focus on stability and rationality in transactions to ensure a balanced international payment system in the long run.