Chinanews.com, September 18th. The State Administration of Foreign Exchange announced on its official website on the 18th of August 2020 bank foreign exchange settlement and sales and bank's foreign-related receipt and payment data. The data shows that in August 2020, banks settled 1106.2 billion yuan in foreign exchange and sold foreign exchange. 1132.8 billion yuan, a foreign exchange settlement and sales deficit of 26.5 billion yuan; in U.S. dollars, bank settlements were 159.6 billion US dollars, foreign exchange sales were 163.4 billion US dollars, and a foreign exchange settlement and sales deficit was 3.8 billion US dollars.

　　From January to August 2020, banks have settled a total of 9.0155 billion yuan, and a total of 856.7 billion yuan has been sold, and a cumulative foreign exchange settlement and sales surplus of 508.8 billion yuan; in U.S. dollars, banks have settled a total of US$1.2852 billion and sold a total of 1.213 billion. U.S. dollars, with a cumulative foreign exchange settlement and sales surplus of US$72.2 billion.

　　In August 2020, the bank’s foreign-related income on behalf of customers was 2,473.9 billion yuan, external payments were 2,385.5 billion yuan, and foreign-related receipts and payments had a surplus of 88.4 billion yuan.

From January to August 2020, the accumulated foreign-related income of banks on behalf of clients was 18,799.7 billion yuan, the accumulated external payments were 18,862.9 billion yuan, and the accumulated foreign-related receipts and payments had a surplus of 170.1 billion yuan.

　　Valued in US dollars, in August 2020, banks’ foreign-related income on behalf of customers was 356.8 billion US dollars, foreign payments were 344.1 billion US dollars, and foreign-related receipts and payments had a surplus of 12.7 billion US dollars.

From January to August 2020, the accumulated foreign-related income of banks on behalf of customers was 2.679.7 billion US dollars, the accumulated foreign payments were 2.655.5 billion US dollars, and the accumulated foreign-related receipts and payments had a surplus of 24.2 billion US dollars.

　　The State Administration of Foreign Exchange revised the data on foreign-related receipts and payments from January to July 2020 based on the latest data, and announced it through the “Statistics” section of the official website of the State Administration of Foreign Exchange.

　　Attachment: Wang Chunying, deputy director and spokesperson of the State Administration of Foreign Exchange, answered reporters' questions on the situation of foreign exchange receipts and payments in August 2020

Question:

What is the change in the situation of China's foreign exchange receipts and payments in August 2020?

Answer: In

August, China's foreign exchange market basically balanced supply and demand.

First, the bank's foreign exchange settlement and sales deficit was US$3.8 billion, a year-on-year decrease of 29%.

Taking into account the foreign exchange transactions of foreign institutions in the inter-bank foreign exchange market, changes in bank foreign exchange positions and other factors, the supply and demand in the foreign exchange market is generally balanced.

Second, the net inflow of cross-border funds from the non-bank sector was US$12.7 billion, which was at a relatively high level recently.

Third, the scale of foreign exchange reserves rose steadily, reaching US$3.1646 billion at the end of August, an increase of US$10.2 billion from the end of July.

　　Cross-border capital flows through major channels continue to show positive changes.

First, the cross-border surplus of trade in goods rose.

In August, the cross-border surplus of trade in goods increased by 1.1 times year-on-year, of which income from trade in goods increased by 2.6% and expenditures decreased by 3.1%.

Second, the seasonal peak of corporate dividend distribution ends.

In August, the deficit in foreign exchange settlement and sales of income and current transfers decreased by 34% month-on-month, mainly due to a 39% decrease in foreign exchange purchases of investment income.

Third, the inflow of foreign capital into the domestic bond market remained high.

In August, foreign investors increased their holdings of domestic bonds by US$21 billion, which was higher than the historical average.

　　At present, there are still many unstable and uncertain factors in the external environment. However, my country's system has significant advantages, the long-term economic growth, the broad market space, and strong development resilience will provide fundamental support for the stability of my country's foreign exchange market.

my country will gradually form a new development pattern with the domestic cycle as the main body and the domestic and international dual cycles promoting each other, which will help my country's current account to maintain a reasonable range.

Steady progress in the two-way opening of the financial market will help balance the flow of cross-border capital.

The development of the foreign exchange market has become more mature, trading behaviors are rational and orderly, and the flexibility of the RMB exchange rate has increased. It will continue to play its role as an "automatic stabilizer" in regulating the macro economy and international payments.