In the first half of the year, banks had a surplus of US$85.2 billion in foreign exchange settlement and sales
Resilience of the foreign exchange market enhances the stability of cross-border capital flows
“my country has effectively coordinated epidemic prevention and control and economic and social development. Recently, major macroeconomic indicators have stabilized and rebounded, and the economy has generally shown a recovery and development trend. Against this background, my country’s foreign exchange market has become more resilient, the RMB exchange rate has been relatively stable, and cross-border capital flows have generally Stable.” Wang Chunying, deputy director of the State Administration of Foreign Exchange and spokesperson, said at a press conference held by the State Council Information Office on the morning of the 22nd.
Statistics show that in the first half of the year, banks recorded a surplus of US$85.2 billion in foreign exchange settlement and sales, and a surplus of US$83.4 billion in foreign-related receipts and payments by banks on behalf of customers.
Banks’ foreign exchange settlement and sales and cross-border receipts and payments continued to be in surplus
In the first half of the year, my country’s foreign exchange receipts and payments showed the following main characteristics: First, banks’ foreign exchange settlement and sales and cross-border receipts and payments continued to remain in surplus. In the first half of the year, banks’ foreign exchange settlement and sales and foreign-related receipts and payments both showed a surplus of over US$80 billion. Second, the sales exchange rate rose slightly, and the cross-border financing of enterprises remained stable. Third, the settlement exchange rate was stable with some rise, and the balance of foreign exchange deposits of enterprises was basically stable. Fourth, the scale of foreign exchange derivatives transactions continued to grow, and market players’ awareness of exchange rate risk management was steadily enhanced. Fifth, the scale of foreign exchange reserves was basically stable.
“In the next step, the foreign exchange bureau will further deepen the reform and opening up in the field of foreign exchange, promote the facilitation of cross-border trade, investment and financing, and serve the development of the real economy. At the same time, it will strengthen the research and judgment of foreign exchange receipts and payments, and continuously improve the foreign exchange market’s “macro-prudential + micro-supervision” The two-in-one regulatory framework maintains the stable operation of the foreign exchange market and the national economic and financial security.” Wang Chunying said.
Relatively stable performance of RMB exchange rate
Since the beginning of this year, in the face of complex and severe external shocks and challenges, the resilience of my country’s foreign exchange market has been fully reflected.
First, the RMB exchange rate has become more flexible, and it has performed well globally. The main line of changes in the international foreign exchange market this year is the strengthening of the US dollar and the weakening of major non-US dollar currencies. In this context, the exchange rate of RMB against the US dollar has depreciated, but compared with major international currencies, the value of RMB is more stable.
Second, my country’s cross-border capital flows are generally stable, showing a relatively balanced development trend.
Third, the current account surplus and long-term capital inflows are still the fundamentals for stabilizing my country’s cross-border capital flows.
Wang Chunying said: “In general, my country has effectively coordinated epidemic prevention and control and economic and social development, with good economic resilience, ample potential, and large room for maneuver, which has laid a good foundation for the smooth operation of my country’s foreign exchange market, and will also be more capable of dealing with external changes in the environment.”
Release the dividends of exchange rate risk management policies
In recent years, the foreign exchange bureau has taken a series of measures to reduce exchange rate hedging costs and improve the ability of enterprises to deal with exchange rate risks, focusing on small and medium-sized enterprises. According to the data, in the first half of the year, the scale of enterprises using foreign exchange derivatives such as forward options to manage exchange rate risk reached US$755.8 billion, a year-on-year increase of 29%. The foreign exchange hedging ratio increased by 4.1 percentage points over the whole of last year to 26%. Nearly 17,000 new exchange rate hedging “first households” enterprises, most of which are small, medium and micro enterprises.
Wang Chunying said that the next step will be to release the dividends of exchange rate risk management policies, break through the existing blockages in the implementation of policies, strengthen policy transmission to financial institutions, and urge financial institutions to enhance the initiative and professional level of serving enterprises for exchange rate hedging; continue to support those who meet the conditions. Local governments have replicated and promoted the successful practice of exchange rate risk management for small, medium and micro enterprises, made good use of relevant special funds, and implemented fee reductions neatly.Return to Sohu, see more
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