2005 First Half China International Balance of Payments Report

Author: International Balance of Payments Analysis Group, State Administration of Exchange Rate
Publisher:
Publish Date: 2005-12-01
Features: In the first half of 2005, China's national economy developed rapidly, with a significant growth in foreign trade. Foreign direct investment in China continued to maintain a substantial scale, and the economic account and capital and financial account of the balance of payments continued to show a "dual surplus." The RMB exchange rate against the U.S. dollar remained stable. As of the end of June 2005, China's foreign exchange reserve balance stood at $711 billion. In the first half of 2005, China's balance of payments generally operated smoothly. The continuous expansion of the scale of balance of payments transactions promoted national economic development, enhanced China's ability to withstand external shocks, and created favorable conditions for economic development and reform. At the same time, under the condition of a sustained large surplus in the balance of payments, it is even more important to rationally and effectively utilize both domestic and international markets and resources, effectively expand domestic demand, accelerate the adjustment and upgrading of industrial structures, transform the growth model, and promote the basic balance of the balance of payments. In the first half of 2005, the country continued to strengthen and improve macroeconomic regulation, accelerate economic restructuring, transform foreign trade growth models, vigorously implement the "going global" development strategy, and steadily advance financial reforms. The foreign exchange management authorities deepened the reform of the foreign exchange management system around the goal of promoting balance of payments equilibrium, continued to advance trade facilitation, standardized capital inflow and settlement management, expanded channels for capital outflow, and actively fostered and developed the foreign exchange market.