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- Index number:
- 000014453-2012-00090
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- Dispatch date:
- 2012-03-26
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- Publish organization:
- State Administration of Foreign Exchange
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- Exchange Reference number:
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- Name:
- An Interview with a Relevant Official of the State Administration of Foreign Exchange on Issues Concerning the Balance-of-Payments Situation
Editor’s note: The State Administration of Foreign Exchange (SAFE) recently conscientiously studied and implemented the spirit of the National Financial Work Conference, comprehensively summarized the practice of reform and development of foreign exchange administration during the past five years, and set forth the tasks for foreign exchange administration during the next period. During the last five years, the SAFE, under the strong leadership of the CPC Central Committee and the State Council, adhered to the theme of scientific development, the main line of accelerating the transformation of the pattern of economic development, and the essential financial requirements serving the real economy, closely focusing on the central task of promoting a basic equilibrium in the balance of payments, unswervingly carrying forward the reform of the foreign exchange administration system, energetically promoting the facilitation of trade and investment, sticking to the risk limits, establishing a system and mechanism for protection against the risks of cross-border capital flows, successfully dealing with the impact of the international financial crisis, effectively guarding against economic and financial risks, and effectively promoting the steady and rapid development of the national economy.
In order to better implement the spirit of the National Financial Work Conference and to facilitate learning among various social circles about the progress in the reform and development of foreign exchange administrations, we will provide a detailed description of relevant information related to several special topics.
Special Topic I
An Interview with a Relevant Official of the State Administration of Foreign Exchange on Issues Concerning the Balance-of-Payments Situation
Question 1: One of the current main targets of macro-control in
Answer: The CPC Central Committee and the State Council place high priority on the development of an internal and external equilibrium in the economy, treat the promotion of an equilibrium in the balance of payments as an important task to maintain macro-economic stabilization, and is actively “expanding domestic demand, adjusting the structure, reducing the surplus, and promoting a balance of payments.” In recent years, this work has gradually achieved results, and the balance of payments is approaching a basic equilibrium. In 2007, the proportion of the surplus in
Question 2: What is the main reason for the continuous improvement in
Answer: There are internal reasons as well as external reasons, structural factors as well as cyclical factors, and the effect of the market as well as the influence of policy.
First, accelerating the transformation of the pattern of economic development and adjusting the economic structure to substantially promote an improvement in the balance-of-payments situation. In recent years, the harmony and endogeneity of
Second, accelerating policy adjustments for the foreign economy, gradually eliminating the structural and institutional obstacles that affect the balance of payments equilibrium. In terms of trade policy,
Third, changes and developments in international economic and financial situations promoted an improvement in
Question 3: Specifically, in terms of promoting a basic equilibrium in the balance of payments, what measures are being taken by the foreign exchange authorities?
Answer: In recent years, the foreign exchange authorities have been treating scientific development as the theme, and the acceleration of the transformation in the pattern of economic development as the main line, and have actively cooperated with the macro-control by the state and have taken measures in different areas to control inflows, promote outflows, reduce the surplus, and promote the balance of payments. First, strengthening the monitoring and early warning system for the bidirectional flow of cross-border capital and the balanced management of outflows and inflows of cross-border capital; second, continuously enriching the tools for managing cross-border capital flows, improving the emergency response plan, and effectively guarding against the risks of massive cross-border capital flows; third, intensifying management of unusual capital inflows, emphasizing priorities, and rigorously cracking down on illegal and irregular capital inflows; fourth, promoting reform in key areas and key links of foreign exchange administration, expanding the channel for the utilization of foreign exchange funds, developing the foreign exchange market, and continuously improving the market mechanism and management system for the adjustment of the balance of payments. The above measures have achieved initial results. In 2011 the cross-border receipt and payment surplus and the foreign exchange settlement and sales surplus of the non-bank sector decreased by 9 percent and 8 percent respectively from the last year, and the increment in foreign exchange reserves (setting aside the changes in the exchange rate and asset prices) decreased 18 percent; a unilateral appreciation of the RMB was expected to fail, and there was an initial bidirectional fluctuating pattern in the RMB exchange rate.
Question 4: In 2012, how will
Answer: At the end of 2011, under the combined influence of domestic and foreign factors, market and policy factors, as well as other factors, fluctuations in
Question 5: In terms of promoting a basic equilibrium in the balance of payments, what measures will be taken by
Answer: Despite the fact that at the end of 2011,