Yi Gang asks improved forex control and service at all levels
Ever since the start of reform and open policy, <?xml:namespace prefix = st1 ns = "urn:schemas-microsoft-com:office:smarttags" />China has deeply incorporated in the economic globalization and realized a great leap forward in foreign-related economy. By the end of 2008, both total foreign trade value and GDP ranked the third in the world, presenting 1.4 trillion and 1.1 trillion US$ by export and import trading. 6.7 billion foreign-loaned enterprises have been approved to attract 852.6 billion dollars while 10,000 overseas investors have been set up by 180.0 billion dollars of direct investment. Presently around 800,000 industries and banks apply for balance of payment transactions, with an amount of 4.5 trillion US dollars reflecting 81 times that of 1982 and 5 times that of 2000.<?xml:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" />
Facing the leap of foreign-related economy, we need a framework of open economy to make study of foreign exchange control today with a global perspective; the key point to the framework suggests a “fundamental role of market impact on the allocation of resources”. After the financial crisis, wider fluctuation has occurred in the nation’s balance of payment, as seeing the sharp fall of exchange inflows in 2009’s 1st quarter, and then slightly climbing by the 2nd quarter under the influence of world recovery and stipulated domestic demand. By the end of 2009, the nation’s exchange reserves remained 2.39 trillion US dollars, exceeding 2008 by 453.1 billion dollars.
In the prospect of 2010, there still remains a difficult task to balance international payment when experiencing pressure form capital inflows. However, along with the world economic recoveries we will be better off in foreign-related economy; but with the resumption of export growth and foreign direct investment, it will accept more challenges from cross-border capitals inflowing. Moreover, it shows a trend of further expansion of the debts by foreign currencies and assets counted in home currencies relating to the economies.
Taking the scientific conception of development, the task of foreign exchange control ought to realize “five transitions” in management concept and method, this is, shifting the focus on monitoring and analyzing from approval of documents; taking the way of remedial management instead of proactive supervision, etc.
