China News Network, March 3 According to the news of the "State Administration of Foreign Exchange" public account on the 15th, a few days ago, the State Administration of Foreign Exchange announced the data of bank foreign exchange settlement and sale and bank collection and payment on behalf of customers in February 15. Wang Chunying, deputy director and spokesperson of the State Administration of Foreign Exchange, said in response to a reporter's question that the surplus of foreign payments in goods trade in February was US$2023.2 billion, which was basically the same as the same period in 2 and still maintained a high scale. The services trade deficit of US$259.2022 billion fell slightly month-on-month and year-on-year, with exports from some emerging services sectors steadily increasing while cross-border travel spending recovered in an orderly manner.
According to Wang Chunying, China's foreign exchange market supply and demand maintain a basic balance. In February, the scale of bank foreign exchange settlement and foreign exchange sales was basically the same, and the foreign-related income and expenditure of non-bank sectors such as enterprises and individuals became more balanced. After the start of the Spring Festival, the import of raw materials and replenishment of inventory of enterprises increased, and the related foreign-related expenditures increased, reflecting the seasonal characteristics of enterprise production and operation. Based on the situation in the first two months of 2, the non-banking sector had a surplus of US$2023.314 billion in foreign payments, cross-border capital flows started well, and supply and demand in the domestic foreign exchange market maintained a basic balance.
Market entities should remain rational in their foreign exchange trading behavior. In February, the settlement exchange rate (the ratio of foreign exchange income from customers selling foreign exchange to banks and customers' foreign-related foreign exchange income) was 2.70%, an increase of 3.8 percentage points from the previous month, indicating that market entities showed a rational trading mode of "bargaining at high prices", and their willingness to settle foreign exchange has been enhanced. The selling exchange rate (the ratio of customers buying foreign exchange from banks to customers' foreign-related foreign exchange expenditures) was 9.68%, which was basically unchanged from the previous month, indicating that the willingness of market entities to purchase foreign exchange was generally stable.
Wang Chunying also said that trade in goods continues to play a fundamental role in stabilizing cross-border capital flows. In February, the surplus of foreign payments in goods trade was US$2.259 billion, which was basically the same as the same period in 2022 and remained relatively large. The services trade deficit of US$43.<> billion fell slightly month-on-month and year-on-year, with exports from some emerging services sectors steadily increasing while cross-border travel spending recovered in an orderly manner.
In the future, China's foreign exchange market has the foundation and conditions to maintain stable operation. The effect of the current policies to support economic growth has been further manifested, the pace of expansion of enterprise production and operation activities has accelerated, China's economic prosperity level has continued to rise, and the foundation for cross-border capital flow to remain stable has become more solid. At the same time, the opening up of China's financial market continues to advance, and the investment attributes and hedging attributes of RMB assets are prominent, which will still attract foreign capital to invest steadily in the domestic market. In addition, the resilience of China's foreign exchange market has been enhanced, and market entities are more mature and rational, which can better adapt to changes in the external environment. (Zhongxin Finance)