July bank settlement and sales of foreign exchange deficit of US$2.5 billion
Basic balance of supply and demand in the foreign exchange market
Beijing, August 21st (Reporter Qiu Haifeng) The State Administration of Foreign Exchange announced on the 21st the data on bank foreign exchange settlement and sales and the bank's foreign-related receipts and payments on behalf of clients. Statistics show that in July, banks settled US$172.2 billion, sold US$174.7 billion, and had a deficit of US$2.5 billion.
Wang Chunying, deputy director and spokesperson of the State Administration of Foreign Exchange, said that in July, my country's foreign exchange market was generally stable and the supply and demand of the foreign exchange market remained basically balanced. “First, the bank’s foreign exchange settlement and sales deficit of US$2.5 billion was mainly affected by the concentration of seasonal dividends, but the deficit narrowed by 59% year-on-year. Taking into account the foreign exchange transactions of foreign institutions in the interbank foreign exchange market and changes in bank foreign exchange positions The overall balance of supply and demand in the foreign exchange market. The second is that the foreign-related income and expenditure of the non-banking sector is basically balanced. In July, the foreign-related income and expenditure of non-banking sectors such as enterprises and individuals had a deficit of 2 billion US dollars. The balance of China’s foreign exchange reserves was 3,154.4 billion U.S. dollars, an increase of 42.1 billion U.S. dollars from the end of June, a positive increase for four consecutive months." Wang Chunying said.
In July, the transactions of market entities were rational and orderly, and the flow of funds through main channels was generally stable. Wang Chunying said that first of all, in July, the exchange rate, which measures the willingness to settle foreign exchange, increased by 7 percentage points from the previous month, and the sales exchange rate, which measures the willingness to purchase foreign exchange, was basically the same. Secondly, cross-border capital inflows from major channels have been steadily increasing. In July, the cross-border surplus of trade in goods increased by 12% year-on-year, and the net increase in foreign investment in domestic listed stocks and bonds increased by 1.4 times year-on-year. Foreign direct investment in China and my country's foreign direct investment related capital flows remained generally stable.
Wang Chunying said that at present, the domestic domestic epidemic has basically been controlled and blocked, and the national economy has maintained a stable recovery trend, providing a solid foundation for the stability of the foreign exchange market. In the future, the external environment will remain complex and severe, with great uncertainties and uncertainties. However, the resilience and potential of China’s economy are huge. A new development pattern with domestic and international cycles as the mainstay and mutual promotion of domestic and international double cycles will accelerate to form, which will be conducive to continued development. The healthy and stable operation of China's foreign exchange market provides support.