Chinese banks’ 2010 forex surplus tops $398b|World Overseas Chinese Entrepreneurs Club Website (China)

China’s foreign exchange watchdog said Thursday that the surplus of Chinese banks’ foreign exchange purchases to sales in client transactions increased 51 percent through 2010 to stand at $397.7 billion at year-end.

China’s institutional and individual clients sold $1.33 trillion in foreign exchange to banks in 2010 while purchasing $932.7 billion, said the State Administration of Foreign Exchange (SAFE) in an online statement.

In 2009, the annual surplus fell 42 percent to $263.5 billion, according to SAFE’s data released in March 2010.

The statement noted the figures did not include banks’ own forex transactions and interbank transactions.

The forex surplus in December 2010 totaled $51.5 billion, as clients sold $146.2 billion of foreign exchange, up 13 percent from November, while purchasing $94.7 billion, up 12 percent, it said.

Chinese banks received $1.89 trillion for their clients in overseas business in 2010 and paid $1.59 trillion to overseas business, it added.

The SAFE only began releasing monthly and quarterly data on bank foreign exchange transactions in 2010. – Xinhua

China starts pilot scheme for settlement of overseas direct investments in yuan

China announced on Thursday that the nation’s qualified enterprises and banks could settle their overseas direct investment in yuan, a move that could expand the currency’s global reach.

The People’s Bank of China (PBOC), or the central bank, said on its website that, banks and enterprises which are allowed to settle the cross-border trade in yuan are permitted to conduct direct investments overseas using yuan, or Renminbi.- Xinhua