Domestic Bonds

China’s foreign currency bank deposits up $ 129.7 billion in first half


BEIJING, July 23 (Xinhua) – China’s foreign currency bank deposits increased by US $ 129.7 billion in the first half of this year, a senior official said on Friday.

By the end of June, the balance of bank deposits in foreign currency had exceeded 1,000 billion US dollars, Wang Chunying, deputy director and spokesperson for the State Administration of Foreign Exchange, told a press conference.

Wang attributed the increase in foreign currency deposits to the merchandise trade surplus. In the first half of 2021, China‘s cross-border merchandise trade surplus was around $ 160 billion, up 74% year-on-year.

The increase in foreign currency deposits indicates that business expectations have become more rational, Wang said, citing more stable exchange rate expectations, more mature foreign exchange transactions and more rational management of local and foreign currency funds. market entities in recent years.

The increase in deposits has also helped increase the external holdings of banks, which is conducive to the balance of international payments, Wang said.

Data on Friday also shows that China’s external debt stock stood at $ 2.5 trillion at the end of March, up 5% from the end of last year.

The increase in China’s foreign debt is mainly due to the rise in domestic bonds held by foreign investors, Wang said.

Since 2020, foreign purchases of domestic bonds have accounted for about half of the increase in total foreign debt, as the Chinese economy has taken the lead in the recovery and the Chinese bond market has continued to open. , according to Wang.