The State Administration of Foreign Exchange talks about the rise in commodity prices: the overall balance of payments is healthy

China-Singapore Jingwei Client, April 23. On the 23rd, the State Council Information Office held a press conference on the foreign exchange receipts and expenditures data for the first quarter of 2021. When talking about the rise in international commodity prices, the Deputy Director of the State Administration of Foreign Exchange, News Spokesperson Wang Chunying said that my country is one of the major importers of bulk commodities, and the impact of price increases deserves our attention.

Wang Chunying, deputy director and spokesperson of the State Administration of Foreign Exchange.Source: China Net

Wang Chunying pointed out that the world economy has been gradually recovering recently, and major developed countries have implemented very strong stimulus policies, which will boost consumer demand to a certain extent. At the same time, liquidity remains abundant, so commodity prices are rising. Regarding this issue, my country is one of the major importers of bulk commodities, and the impact of price increases deserves our attention. Some scholars and media are also concerned, such as the issue of imported inflation.

Wang Chunying said that from the perspective of the foreign exchange bureau, we are more concerned about the impact of rising commodity prices from the perspective of international payments. For example, if import payments increase, what impact will it have on the balance of payments? We saw an increase in imports in the first quarter, but exports also achieved good growth. The trade in goods still achieved a surplus of 760 billion yuan, which was higher than the average level of the previous two years. Under this circumstance, the current account maintained a basic balance and a small surplus in the first quarter. It should be said that the overall balance of payments is still healthy.

Wang Chunying also said that the foreign exchange bureau will continue to promote the liberalization and facilitation of trade and investment, and there is no need to worry in this regard. In 1996, my country realized current account convertibility, and the real demand for foreign exchange for imports can be guaranteed in terms of policies. (Zhongxin Jingwei APP)