2007-06-06-国家外汇管理局-中国外汇管理年报---2006年_194页_36mb

China's Foreign Exchange Management Summary

Macro-Economic Overview and Balance of Payments in 2006

• Economic Growth: In 2006, China's GDP reached RMB 20.94 trillion, with a nominal growth of 10.7%. Industrial profit rose by 31%, and fiscal revenue increased by 700 billion yuan.
• Balance of Payments: Under current account, surplus reached USD 249.9 billion (+55.4%). Current transfers contributed significantly to the surplus, while the capital account surplus dropped to USD 10.0 billion (-84.1%). National foreign exchange reserves jumped to USD 1.066 trillion, growing USD 247.47 billion.

Foreign Exchange Management Policies

• Exchange Rate Flexibility: RMB against USD appreciated 3.35% in 2006. The central parity rate became more flexible.
• Market Development: Intrabank foreign exchange market turnover increased 218%, introducing spot inquiry trading, market maker systems, and swap transactions. Authorized foreign currency pair trades expanded, with USD 75.686 billion turnover in 2006.
• Individual FX Management: Annual total quota management of RMB 50,000 for both sales and purchases implemented.

Capital Account and Reserves

• Capital Controls: Easing controls on foreign investment and capital flows, with QDII and QFII approvals continued to expand. Foreign exchange reserves reached USD 1.066 trillion, up by USD 247.5 billion.
• Reserve Management: Optimized currency and asset allocation, improving yield and risk management systems. The management focused on large-scale asset consolidation and capability development.

External Debt and Balance of Payments Statistics

• External Debt: Year-end 2006 debt reached USD 322.988 billion, up 14.92%. Short-term debt (56.85%) contributed most to growth. Commercial banks led debtors at USD 1.0 billion.
• Debt Structure: Registered external debt rose to USD 218.988 billion, with inward foreign direct investment at 56%. Structure remained stable, with long-term debt having lower growth rates.

Administrative Reforms

• Data Transparency: New BOP reporting system enhanced data accuracy and analysis. The system also eased reporting burdens for banks and enterprises.
• Regulatory Framework: SAFE introduced legal-based administration, revised policies, and improved technology, including launch of a new statistical system for foreign exchange.

Special Initiatives

• Anti-Money Laundering: Systems such as the Anti-Money Laundering system won 2006 banking awards.
• Infrastructure Development: HQ data center expanded, with an upgrade of computer systems and consolidation of data processing capacity.

Future Outlook for 2007

• Strategic focus on four key tasks: liberalization and adjustment of foreign exchange management, promotion of outward investment, strengthening supervision on capital flows, and improving electronic administration. The goal is to achieve payment balance and steady macroeconomic growth.

Statistical and Monitoring Systems 針對分紅 (SEEK for “Statistical and Monitoring Systems")

• New BOP System: Implemented in 2006, improving data quality and foreign exchange statistical management systems.
• Integrated Reporting: Crushes information fragmentation, enabling real-time monitoring and reducing reporting duplication.

Note: Comprehensive summary with detailed sections summarized into high-level points.