由 caicai8478 Deputy Director and Spokesperson of the State Administration of Foreign Exchange, Li Bin:
Good afternoon, friends from the media! Thank you for your continued interest and support for foreign exchange management. I would like to take this opportunity to first brief you on my country’s foreign exchange receipts and payments in the first half of 2025, and then, together with my colleagues, answer your questions.
Since 2025, the external environment has become increasingly complex and volatile, with rising unilateralism and protectionism, weakening growth momentum in the global economy and cross-border trade, and increasing volatility in international financial markets. my country has accelerated the implementation of more proactive and effective macroeconomic policies, focused on expanding domestic demand, and effectively responded to external challenges. The economy has generally maintained stable growth, making steady progress, and high-quality development has continued to consolidate. The foreign exchange market has operated smoothly, demonstrating strong resilience and vitality, and outperforming market expectations. This can be summarized in five key aspects:
First, the scale of foreign-related receipts and payments has steadily increased, which is a measure of total volume. In the first half of the year, cross-border income and expenditure of non-bank sectors, including enterprises and individuals, totaled US$7.6 trillion, a year-on-year increase of 10.4%, reaching a record high for the same period. The RMB accounted for 53% of cross-border income and expenditure. Bank foreign exchange settlement and sales totaled US$2.3 trillion, a year-on-year increase of 3%, the second-highest level on record for the same period. These data indicate that my country’s cross-border trade, investment, and financing activities remain robust.
Second, cross-border capital continued to experience net inflows, as measured by the difference between income and expenditure. In the first half of the year, non-bank sectors, including enterprises and individuals, saw a net inflow of US$127.3 billion, continuing the trend of net inflows since the second half of last year. Net inflows in the second quarter increased by 46% month-on-month. By item, net inflows under goods trade remained high in the first half of the year, with foreign investment increasing its overall holdings of domestic stocks and bonds. Service trade and profit remittances by foreign-invested enterprises remained stable and orderly.
Third, the foreign exchange market maintained a generally balanced supply and demand. In the first half of the year, banks experienced a US$25.3 billion deficit in foreign exchange settlement and sales, but this showed significant changes on a monthly basis. Among them, foreign exchange settlement and sales recorded a deficit in January, tended to be basically balanced from February to April, and turned into a surplus in May and June. The trading behavior of enterprises and individuals was generally rational and orderly. In the first half of the year, the foreign exchange settlement rate for foreign exchange income, which measures the willingness to settle foreign exchange, was 60%, remaining stable year-on-year; the foreign exchange settlement rate for foreign exchange expenditures, which measures the willingness to purchase foreign exchange, was 65%, down 3 percentage points year-on-year.
Fourth, foreign exchange market transactions were active. In the first half of the year, the domestic RMB foreign exchange market trading volume totaled US$21 trillion, a year-on-year increase of 10.2%. Of this, spot and derivative trading volumes were US$7.4 trillion and US$13.6 trillion, respectively, accounting for 35% and 65% of the total.
Fifth, the size of my country’s foreign exchange reserves remained stable. At the end of June, China’s foreign exchange reserves stood at US$3,317.4 billion, an increase of US$115.1 billion from the end of 2024. In the first half of the year, non-US currencies appreciated against the US dollar, and global financial asset prices generally rose. Driven by factors such as exchange rate conversion and asset valuation changes, my country’s foreign exchange reserves steadily increased.
Overall, in the first half of the year, my country’s foreign exchange market effectively and efficiently responded to external shocks and risks, maintaining overall stable operations. Going forward, the State Administration of Foreign Exchange will resolutely implement the decisions and deployments of the CPC Central Committee and the State Council, adhere to the general principle of seeking progress while maintaining stability, coordinate development and security, and continue to establish and improve a foreign exchange management system and mechanism that is “more convenient, more open, more secure, and more intelligent,” to promote high-quality economic development and high-level opening up. This concludes my brief report on foreign exchange receipts and payments in the first half of the year. My colleagues and I are happy to answer your questions. Thank you!
2025-07-22 15:08:48
Li Bin, Deputy Administrator and Spokesperson of the State Administration of Foreign Exchange:
Thank you for your attention to the foreign exchange situation. Let me answer this question. Since the beginning of this year, the foreign exchange situation has been complex and volatile, with risks and challenges significantly increasing. Faced with external shocks, my country’s foreign exchange market has withstood the pressure, operated smoothly, and demonstrated strong resilience. I just introduced five characteristics of foreign exchange receipts and payments. Now, I would like to add three more.
First, the RMB exchange rate remained basically stable. In the first half of this year, the RMB exchange rate against the US dollar appreciated by 1.9%, fluctuating between 7.15 and 7.35 against the US dollar in both directions. This maintained basic stability at a reasonable equilibrium level and served as an automatic stabilizer for macroeconomic and balance of payments adjustments.
Second, foreign exchange market expectations remained stable. Judging from foreign exchange market indicators such as forwards and options, there is currently no unilateral market expectation of RMB appreciation or depreciation. Market transactions were rational and orderly. When the RMB weakened, businesses increased their foreign exchange settlement at high prices; when the RMB strengthened, businesses increased their foreign exchange purchases at low prices. Overall, there was no irrational trading behavior such as chasing rising and falling prices.
Third, the balance of payments remained basically balanced. Since the beginning of this year, my country’s current account surplus has steadily increased and is generally at a reasonable equilibrium level. In contrast to the current account surplus, the non-reserve financial account has shown a deficit, roughly equivalent to the current account surplus, indicating a self-balanced balance of payments. Investment in China is generally positive. From January to May, net equity direct investment inflows into China reached US$31.1 billion, a year-on-year increase of 16%. Net securities investment inflows into China reached approximately US$33 billion, reversing the net outflow trend in the second half of last year. Outbound investment progressed in an orderly manner. From January to May, equity direct investment outbound reached US$51.9 billion, essentially flat year-on-year, and outbound securities investment remained active.
Foreign exchange authorities actively guarded against and mitigated external shocks and risks, striving to maintain the stable and healthy operation of the foreign exchange market. We adhered to a managed floating exchange rate system based on market supply and demand, maintained RMB exchange rate flexibility, and promoted market supply and demand balance through price mechanisms. We continued to optimize the supply of foreign exchange policies, deepened reform and opening-up in the foreign exchange sector, and enhanced the facilitation of cross-border trade, investment, and financing. At the same time, we strengthened monitoring and early warning of cross-border capital flows, resolutely guarded against the divergence of unilateral market expectations, and cracked down on illegal and irregular activities in the foreign exchange sector. In the first half of the year, we investigated and dealt with over 400 cases of foreign exchange violations and, in cooperation with public security organs, punished over 180 cases of illegal banks, effectively maintaining a sound foreign exchange trading order. Overall, policies to stabilize the market and expectations have achieved positive results. Thank you!