2006 First Half China International Balance of Payments Report

Author: None
Publisher:
Publish Date: 2006-12-01
Features: In the first half of 2006, China's economy experienced steady and rapid growth, with relatively fast development in foreign trade and sustained large-scale foreign direct investment. The formation mechanism of the RMB exchange rate was further improved, and exchange rate flexibility increased. The balance of payments remained in a significant surplus. Among them, the current account surplus was $91.6 billion, and the capital and financial account surplus was $38.9 billion. By the end of June 2006, China's foreign exchange reserve balance stood at $941.1 billion. In the first half of 2006, the scale of China's balance of payments transactions continued to expand, with a substantial increase in foreign trade, foreign direct investment in China remaining at a high level, increased profits remitted by foreign-invested enterprises, significant growth in overseas securities financing, and rapid growth in foreign exchange reserves, which ranked first in the world. Currently, the imbalance in the balance of payments, particularly in goods trade, remains prominent. The large surplus in the balance of payments is, on one hand, a result of China's active integration into economic globalization and rapid development of foreign economic activities, and on the other hand, it reflects deep-seated issues in China's savings exceeding investments and the economic structure and growth model. Promoting a basic balance in the balance of payments remains one of the main tasks of China's economic and social development. This book includes an overview of the balance of payments, analysis of major balance of payments items, the operation of the foreign exchange market and the RMB exchange rate, the macroeconomic environment and policy adjustments, an outlook on the balance of payments situation and policy orientation, and an appendix.