On June 17th, the State Administration of Foreign Exchange announced the data for bank settlement and sales and bank client foreign exchange receipts and payments in May 2024.
According to the app of Wise Finance, on June 17th, the State Administration of Foreign Exchange announced the data for bank settlement and sales and bank client foreign exchange receipts and payments in May 2024. According to the statistical data of the State Administration of Foreign Exchange, in May 2024, the bank sold RMB 13.638 trillion and purchased RMB 12.505 trillion in foreign exchange. From January to May 2024, the bank's accumulated sales and purchases of foreign exchange were RMB 68.950 trillion and RMB 63.354 trillion, respectively.
Regarding the foreign exchange situation in May 2024, Wang Chunying, the spokesperson and Deputy Director of the State Administration of Foreign Exchange, pointed out that China's cross-border capital flows are moving towards balance, and the overall operation of the foreign exchange market is stable. In May, the scale of cross-border income and expenditure of non-bank sectors such as enterprises and individuals was roughly the same, showing basic balance, and the cross-border capital flow situation significantly improved. Market expectations remained stable, foreign exchange trading was rational and orderly, and the deficit in foreign exchange transactions showed a significant narrowing, and the supply and demand situation in the foreign exchange market further improved.
Original text:
The State Administration of Foreign Exchange released data on bank settlement and sales and bank client foreign exchange receipts and payments in May 2024.
According to the statistical data of the State Administration of Foreign Exchange, in May 2024, the bank sold RMB 13.638 trillion and purchased RMB 12.505 trillion in foreign exchange. From January to May 2024, the bank's accumulated sales and purchases of foreign exchange were RMB 68.950 trillion and RMB 63.354 trillion, respectively.
In US dollars, in May 2024, the bank sold USD 191.9 billion and purchased USD 176.0 billion in foreign exchange. From January to May 2024, the bank's accumulated sales and purchases of foreign exchange were USD 97.07 billion and USD 89.19 billion, respectively.
In May 2024, the bank's foreign exchange income from clients' payment was RMB 4.1557 trillion, and the payment to foreign entities was RMB 4.1575 trillion. From January to May 2024, the bank's accumulated foreign exchange income from clients' payment was RMB 20.1406 trillion, and total payment to foreign entities was RMB 20.3914 trillion.
In US dollars, in May 2024, the bank's foreign exchange income from clients' payment was USD 585.1 billion, and the payment to foreign entities was USD 584.8 billion. From January to May 2024, the bank's accumulated foreign exchange income from clients' payment was USD 2835.5 billion, and total payment to foreign entities was USD 2870.9 billion.
Wang Chunying, the spokesperson and Deputy Director of the State Administration of Foreign Exchange, answered journalist’s questions about the foreign exchange situation in May 2024.
Recently, the State Administration of Foreign Exchange released the data of bank settlement and sales and bank customer foreign exchange receipts and payments for May 2024. Wang Chunying, the spokesperson and Deputy Director of the State Administration of Foreign Exchange, answered journalist’s questions about the foreign exchange situation in May 2024.
Q: What are the characteristics of China's foreign exchange inflows and outflows in May 2024?
A: China's cross-border capital flows are moving towards balance, and the overall operation of the foreign exchange market is stable. In May, the scale of cross-border income and expenditure of non-bank sectors such as enterprises and individuals was roughly the same, showing basic balance, and the cross-border capital flow situation significantly improved. Market expectations remained stable, foreign exchange trading was rational and orderly, and the deficit in foreign exchange transactions showed a significant narrowing, and the supply and demand situation in the foreign exchange market further improved.
Cross-border capital inflows in goods trade grew rapidly, and foreign investment in domestic bonds maintained a high level. Supported by the continued good development trend of China's foreign trade, the net inflow of cross-border funds in the goods trade category in May 2024 increased by 23% and 76% year-on-year and month-on-month, respectively. The net inflow scale achieved a new monthly high since the second half of 2023, which continued to play a basic role in stabilizing cross-border capital flows. At the same time, foreign capital had a strong willingness to allocate RMB assets. In May 2024, the bank net purchased domestic bonds with a value of 32 billion US dollars, an increase of 86% month-on-month, which was at a historical high. In addition, various types of investments by domestic entities abroad have become more stable and orderly.
China's foreign exchange market has a solid foundation for steady operation in the future. With the macroeconomic policy being implemented more quickly and effectively, the good trend of China's economic recovery will be consolidated and enhanced, which will play a powerful supporting role to the foreign exchange market and the RMB exchange rate. In recent months, multiple international institutions, such as the World Bank and the International Monetary Fund, have raised their expectations for China's annual economic growth rate, showing their confidence in China's economic development. Meanwhile, Chinese enterprises have continuously innovated and developed, and their international competitiveness and ability to adapt to changes in the external environment have continued to improve; the participants in the foreign exchange market have become more mature, the use of exchange rate hedging tools has become more widespread, the proportion of cross-border use of the RMB has steadily increased, the risk management capability of exchange rate has continuously improved, and the inherent resilience of the foreign exchange market has strengthened, which will help smooth market operation.
Source: State Administration of Foreign Exchange, edited by Wise Finance: Chen Xiaoyi.