Recently, the data released by the State Administration of Foreign Exchange in November 2020 showed that the surplus of foreign exchange settlement and payment by banks and sales was 3 billion US dollars in that month, and the surplus of foreign-related receipt and payment of bank valet was 400 million US dollars; from January to 2020 In November, the bank’s cumulative foreign exchange settlement and sales surplus was 92.1 billion US dollars, and the bank’s cumulative foreign-related receipt and payment surplus was 62.9 billion US dollars.
“In November, China’s foreign exchange market operated steadily, and cross-border revenue and expenditure transactions tended to be independent and balanced.
Judging from the performance of the main indicators, the current foreign exchange market transactions are rational and orderly, and cross-border capital flows are generally balanced. At the end of November, the balance of foreign exchange reserves was $317.5 billion, and the size remained basically stable. Wang Chunying, deputy director of the State Administration of Foreign Exchange and press spokesman, said.
At the same time, the willingness of market entities to settle and sell foreign exchange is generally stable.” In November, the settlement rate that measures the willingness of enterprises to settle foreign exchange, that is, the ratio of customers selling foreign exchange to banks to customers’ foreign exchange earnings, was 63%, basically the same as that of the same period last year.
Wang Chunying said: “The sales exchange rate that measures the willingness to buy foreign exchange, that is, the ratio of customers buying foreign exchange from banks to customers’ foreign exchange expenditure is 65%, a slight decrease of 1 percentage point year-on-year.”
Wang Chunying believes that the cross-border capital flow of the main channels has increased or decreased, and the rational differentiation.
In November, driven by the growth of the customs import and export surplus, the surplus of foreign exchange settlement and sale of goods trade increased by 5.5 billion US dollars year-on-year; the foreign exchange settlement and sale deficit of service trade narrowed by 5.6 billion US dollars year-on-year, continuing to remain low; cross-border two-way direct investment remained active, and the net capital inflow scale was basically the same as that of the same period last year.
“At present, the foreign exchange market is running smoothly and orderly, and the cross-border capital flow is balanced in both directions.
However, there are still many uncertainties in the development of the COVID-19 epidemic and the external environment.
Financial institutions and enterprises should establish a sense of ‘risk neutrality’ and manage business risks well.” Wang Chunying said.