The State Administration of Foreign Exchange (SAFE) has recently released data on foreign exchange settlement and sales by banks as well as cross-border receipts and payments by non-banking sectors in November 2022. SAFE Deputy Administrator and Press Spokesperson Wang Chunying answered media questions on China’s foreign exchange receipts and payments for the month of November 2022.

Q: Could you brief us on China’s foreign exchange receipts and payments in November 2022?

A: In November, China’s foreign exchange market operated more smoothly, and the foreign exchange supply and demand within the country remained basically balanced. In November, deficit in foreign exchange settlement and sales by banks narrowed by 47% month-on-month. Taking into account other supply and demand factors in the foreign exchange market, China’s foreign exchange supply and demand became more balanced. In terms of major channels, the net inflow of cross-border funds under trade in goods in November was USD 34.3 billion, up by 4% month-on-month. The net capital inflow of foreign direct investment in China increased rapidly on a month-on-month basis, and foreign investment in domestic securities market showed a net increase. It is expected that cross-border capital, such as trade in goods and foreign direct investment, will continue to flow in steadily in the future, which will continue to play a fundamental role in stabilizing the foreign exchange market.

Recently, marginal changes are witnessed in the international economic and financial situation as well as the monetary policy expectations of major developed economies. The US dollar has been falling, and the related spillover impact has eased. With better coordinated epidemic prevention and control with economic and social development in China, the Chinese economy will continue to recover given the effects of the policy package to stabilize the economy and the follow-up measures coming into full force, which will further boost market expectations and confidence. In the meantime, the steady structure of China’s balance of payments and the increased resilience of the foreign exchange market will also help maintain the stable operation of the foreign exchange market.