Foreign Exchange Administration: Although affected by the epidemic, cross-border capital flows from the main channels are basically stable
According to the official website of the State Administration of Foreign Exchange, a few days ago, the State Administration of Foreign Exchange announced data on the settlement and sale of foreign exchange by banks and foreign collections by banks on behalf of customers in February 2020.The spokesperson of the State Administration of Foreign Exchange and Chief Economist Wang Chunying answered questions from reporters on the February 2020 foreign exchange revenue and expenditure guidelines.Q: What are the characteristics of foreign exchange receipts and expenditures expected in February 2020?A: Despite the impact of the New Coronary Pneumonia epidemic, the foreign exchange market was generally stable in February.Main performance: First, the supply and demand of the foreign exchange market maintained a basic balance.In February, the bank had a surplus of 14.2 billion US dollars in foreign exchange settlement and sale. After comprehensively considering other supply and demand factors such as forward and expenditure, the overall supply and demand situation in the foreign exchange market was basically balanced.Second, the non-banking sector’s foreign-related revenues and expenditures continued their net inflow.In February, the surplus of foreign-related receipts and payments of non-banking sectors such as enterprises and individuals in developing countries was US $ 9.6 billion, an increase of 5% over the previous month.The third is that foreign exchange reserves are basically stable, and changes in scale are mainly affected by variable factors such as exchange rate conversion and changes in asset prices.Fourth, the RMB exchange rate fluctuated in two directions within a reasonable range, and the exchange rate was expected to be reasonable.The domestic foreign exchange market has shown a more rational, orderly and mature development trend, and the cross-border capital flows of the main channels have remained basically stable.It is helpful for market participants to expect foreign exchange settlement and sales to be generally stable.In February, measure the expected foreign exchange settlement, that is, the ratio of foreign exchange sales of customers to banks to foreign exchange income of foreign customers is 59%, which is an increase of 5 alternatives compared with the same period in 2019; consider the exchange rate of foreign exchange purchases, that is, customers from banksThe ratio of the purchase of foreign exchange to the client ‘s foreign-related foreign exchange expenditure was 62%, a decrease of 3 transactions from the same period in 2019.At the same time, from the main channels, in February, the trade in goods, direct investment in foreign exchange settlement and sales, and foreign-related receipts and payments continued to have a surplus pattern; foreign investors increased their net holdings of domestic bonds by $ 14 billion, compared with a net increase of $ 1.4 billion in January.At present, the prevention and control measures for chronic diseases are improving, enterprises resume work in an orderly manner, stable and sound foreign exchange policy measures have been introduced one after another, and the fundamentals and internal upward trend of the long-term domestic economy have not changed.At the same time, the long-term opening to the outside world has continued to deepen and promote, the domestic business environment has gradually improved, the degree of internationalization of the capital market has continued to increase, and RMB assets are still attractive to transfer globally, laying a foundation for gradually expanding the stable operation of the foreign exchange market.Editor Li Weijia