SHANGHAI: China's international payments accounts may remain in surplus this year, although the size of the surplus will narrow significantly, the country's foreign exchange regulator on said Saturday.
The State Administration of Foreign Exchange (SAFE) also said that the Chinese yuan may see more two-way volatility this year and warned of fluctuations in cross-border capital flows due to the complex state of the global economy.
SAFE, which oversees China's $3.18 trillion in official foreign reserves, said that it would continue to steadily promote the reform of the foreign exchange management system as well as other key areas to combat speculative inflows.
As part of ongoing efforts to develop its nascent foreign exchange market, the regulator reiterated that it would make steady progress to promote capital account convertibility as well as broaden available channels for foreign investments.
SAFE on Saturday also revised the current account surplus for 2011 to $201.7 billion, down 15.2 percent from a year ago, while the surplus for the fourth quarter of last year was nudged up to $60.4 billion.
Its preliminary figures published on Feb. 10 had showed the current account surplus for 2011 at $201.1 billion and for the fourth quarter at $59.8 billion.
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