According to statistics from the State Administration of Foreign Exchange (SAFE), from January to March 2010, bank settlements of foreign exchange for clients were USD94 billion in January, USD76.3 billion in February, and USD100 billion in March respectively; the total was USD270.3 billion. Bank sales of foreign exchange for clients were USD53.8 billion in January, USD54.5 billion in February, and USD69.3 billion in March; the total was USD177.6 billion. The balance between bank settlements and sales of foreign exchange for clients was USD40.2 billion in January, USD21.8 billion in February, and USD30.7 billion in March, resulting in a total surplus of USD92.7 billion.

During the period from January to March 2010, domestic banks foreign-related collections for clients were USD132.3 billion in January, USD108.1 billion in February, and USD141.8 billion in March respectively; the total was USD382.2 billion. External payments by domestic banks for clients were USD102.1 billion in January, USD93 billion in February, and USD125.80 billion in March; the total was USD320.9 billion. The balance between domestic banks foreign-related collections and payments for clients was USD30.2 billion in January, USD15.1 billion in February, and USD16 billion in March, resulting in a total surplus of USD61.3 billion.

Glossary and relevant definitions

The Balance of Payments refers to all economic transactions occurring between residents and non-residents in China, including all financial transactions and barter resulting in changes in the assets and liabilities of residents and non-residents.

Bank Settlement and Sales of Foreign Exchange for Clients refers to settlement and sales services of foreign exchange provided by designated foreign exchange banks for their clients, exclusive of settlement and sales of foreign exchange conducted by designated foreign exchange banks for themselves and transaction data on the inter-bank foreign exchange market. Statistics on bank settlement and sales of foreign exchange for clients are conducted at the time of the exchange of the RMB and the foreign currency. Specifically, settlement of foreign exchange is the process by which the owner of the foreign exchange sells exchange to designated foreign exchange banks; the sale of foreign exchange is the process by which exchange is sold by the designated foreign exchange banks to the users of foreign exchange. The balance between the settlement and sales of foreign exchange is the offset balance between the settlement and sales of foreign exchange, which will be balanced by the banks through bank transactions on the inter-bank foreign exchange market. This is the major cause of changes in the amount of foreign exchange reserves, which is not equivalent to the net change in foreign exchange reserves during the same period.

The bankssettlements and sales of foreign exchange for clients are not counted in compliance with the principle applicable to the transactions between residents and non-residents, which only include the transactions between banks and their clients in domestic and foreign currencies, i.e., the exchange and transactions between RMB and foreign exchange. Their statistical scope differs from the transactions under the balance of payments.

Foreign-related Collections and Payment by Banks for their Clients refers to the collection and payment occurring between domestic non-bank resident institutions/individuals (collectively called the non-bank section) and non-resident institutions/individuals through domestic banks, which are exclusive of the collection and payment in cash and foreign-related collections and payments by the banks themselves. They include: cross-border collections and payments between non-bank sections and non-residents through domestic banks (including RMB and foreign exchange), and domestic collections and payments between non-bank sections and non-residents through domestic banks (currently including collections and payments in foreign exchange and collections and payments in RMB under the RMB settlement item for cross-border trade). The statistics are collected at the time when the clients conduct foreign-related collections and payments at domestic banks. Specifically, the foreign-related collections by banks for their clients refer to funds collected by non-bank sections from non-residents via domestic banks; the banksexternal payments for their clients refer to the funds paid by non-bank sections to non-residents through the domestic banks.

Although foreign-related collections and payments by banks for their clients constitute an integral part of the balance of payment statistics, in principle they differ from the balance of payment statistics. The capital receipt and payment system is the statistical principle for banksforeign-related collections and payments for their clients, whereas the accrual basis is the statistical principle for the balance of payments. The banksforeign-related collections and payments for their clients only reflect cash flows between domestic non-bank sections and non-residents and do not reflect the barters and foreign-related transactions conducted by the banks themselves, and their statistical scope is smaller than that of the balance of payments.