Beijing Xinhua News covered on 20th June (journalist Jiang Lin) that according to the data released on 20th that feign exchange purchase amounts to 127 billion USD and foreign exchange sale amounts to 139.5 billion USD in May. The deficit of foreign exchange is 12.5 billion USD, which drops by 47% compared to April. The average daily deficit has been dropping for a continuous 5 months, which shows that the supply and demand of foreign currency is getting more and more balanced. 

　　The gap between the purchase and sale of foreign exchange of the bank is one of the reasons that cause the change of our country’s foreign exchange reserve. The press spokesman of the State Administration of Foreign Exchange addressed that from Jan. to May, the deficit gap between the purchase and sale of foreign exchange of the bank is becoming smaller and smaller from 54.4 billion, 33.9 billion, 36.4 billion, 23.7 billion to 12.5 billion USD, which shows that pressure of our country’s cross-border capital outflow is relieving gradually. 

　　On the one hand, it shows that enterprises’ and people’ intention of buying US dollars is going down, and some of the foreign currencies’ capacity of financing is recovering significantly. According to the introduction of the State Administration of Foreign Exchange that the sale exchange rate, which reflects the intention of purchasing foreign exchange,drops by 2% in May compared to April. While the financing balance of foreign exchange rises by 7.4 billion USD, which is 113% more increased compared to April and has been rising for a continuous 3 months. It means that enterprises are going slower in the de-leveraging process of foreign debt.

　　On the other hand, it shows that enterprises are more willing to sell the US dollars in their hand. According to the statics of the State Administration of Foreign Exchange that the sale exchange rate, which reflects the intention of purchasing foreign exchange, rises by 4% in May compared to April. At the same period, the balance of deposit of foreign exchange decreases by 8.8 billion USD, while in April, it increases by 0.9 billion USD, all of which shows that the enterprises’ and people’s intention of keeping foreign exchanging is weakening. 

　　The spokesman says that “The cross-border capital flow in China will be in a  basically stable manner in the mid and long term, because the overall economic operation is in line with expectation, the economical structure is further optimized and the economy is also improving at a high growth speed. ”