In 2006, China's economy kept a fast growth and the opening-up further deepened. The reform of RMB exchange rate forming mechanism is progressing steadily. The elasticity of exchange rate improved significantly. The double favorable balance still continued. In addition, favorable balance of current account amounted to USD 249.9 billion; and the surplus of capital and financial account reached USD10 billion. At the end of 2006, foreign exchange reserve was up to USD 1.0663 trillion, an increase of USD 247.5 billion from a year earlier.

 Balance of Payments of China, 2006 (USD in Millions)

2 Main Items of Balance of Payments
2.1Cargo Trade
2.2 Service Trade
2.3 Direct Investment
2.4 Securities Investment
2.5 Liabilities

3 Foreign Exchange Market Operation and RMB Exchange Rate
3.1 Reform and Construction of Foreign Exchange Market
3.2 Trend of Exchange Rate of RMB for Main Currencies
3.3 Foreign Exchange Trade among Banks

4 Macro-economic Environment and Related Policies Adjustment
4.1 Global Economic Situation
4.2 Domestic Economic Situation
4.3 Adjustment in State's Policies for Foreign-related Economy

5 Situation Prospect and Policy Tendency of Balance Tendency
5.1 Situation Prospect
5.2 Policy Tendency