[Explanation] On October 23, the State Council Information Office held a press conference to introduce foreign exchange receipts and payments data in the first three quarters of 2020.

At the meeting, Wang Chunying, deputy director and spokesperson of the State Administration of Foreign Exchange, said that in the first three quarters, the flexibility of the RMB exchange rate increased, China's cross-border capital flow remained stable, and the supply and demand of the foreign exchange market continued to be basically balanced.

　　[Concurrent] Wang Chunying, Spokesperson of the Deputy Director of the State Administration of Foreign Exchange

　　In the first three quarters, the spot exchange rate of the RMB against the US dollar actually appreciated slightly by 2.3%, a very small margin.

Since the second half of the year, everyone has seen that with the first recovery of the domestic economy and the fall of the U.S. dollar index (and other) internal and external factors, the domestic transaction price has returned to the level of 6.6-6.7.

The renminbi is obviously stronger than other emerging market currencies, but compared with the currencies of major developed countries, our performance is in the middle.

Bank foreign exchange settlement was 1,466.3 billion U.S. dollars, foreign exchange sales were 1390.1 billion U.S. dollars, and the foreign exchange settlement and sales surplus was 76.2 billion U.S. dollars. Supply and demand in China's foreign exchange market remained basically balanced.

The foreign-related income and expenditure surplus of banks on behalf of clients was US$37.4 billion, and the overall cross-border funds showed a net inflow, which has continued to show a surplus pattern since the second quarter.

　　[Explanation] In response to the recent rapid appreciation of the renminbi, Wang Chunying responded that this is mainly supported by the fundamentals of China’s economy, and the renminbi exchange rate is expected to maintain two-way fluctuations and basic stability at a reasonable and equilibrium level in the future.

　　[Concurrent] Wang Chunying, Spokesperson of the Deputy Director of the State Administration of Foreign Exchange

　　Since this year (2020), the RMB has appreciated by 4.5% against the US dollar, the US dollar index has fallen by 4.3%, the euro has appreciated by 5.9% against the US dollar, and the Japanese yen has appreciated by 4.1% against the US dollar.

Therefore, we can compare the performance of the RMB and the major currencies.

Under the combined effect of internal and external factors, we believe that the RMB exchange rate is expected to maintain two-way fluctuations and basic stability at a reasonable and balanced level in the future.

We will further cooperate with the People's Bank of China to continuously deepen the reform of exchange rate marketization and maintain the basic stability of the RMB exchange rate (at) a reasonable and balanced level.

　　[Explanation] Talking about the future foreign exchange revenue and expenditure situation, Wang Chunying said that from the relevant data in the second half of 2020, the stable development of China's foreign exchange market is more stable, and the operation of main indicators is stable and improving. It is expected that China's foreign exchange market will continue to be stable. Development trend.

　　[Concurrent] Wang Chunying, Spokesperson of the Deputy Director of the State Administration of Foreign Exchange

　　Domestic epidemic prevention and control and economic recovery have leading advantages in the world, and production, service, and consumption provide very strong support.

We insist on promoting financial reform and opening up, and it is two-way openness, creating a good policy environment for the two-way flow and stable and balanced flow of cross-border funds.

From the perspective of market conditions, the RMB exchange rate has maintained a high degree of flexibility.

The role of exchange rate adjustment macroeconomics and the automatic stabilizer of international payments will continue to be brought into play.

In the future, we feel that with the support of domestic economic, policy, or market factors, China’s foreign exchange market has the conditions to maintain a sustained and stable development.

　　Lang Jiahui reports from Beijing

Editor in charge: [Li Yuxin]