What Does SDDS Data Reveal?

The Central Bank of China is very busy and busy.

Although the SDDS (special standard for data publication), which has just been released, is not yet comprehensive, it has made a brand new image display on China's central bank's external reserves management level, US debt operation ability, reserve investment situation and market communication skills.

In the presence of these talking data, the Central Bank of China is responsible for stabilizing prices, full employment, promoting economic growth and balancing the balance of payments.

Has been fully recognized by the market.

Data show that in the two months of July and August, the size of the securities held by the Central Bank of China decreased by 50 billion 980 million US dollars and US $95 billion 500 million respectively.

It shows that in response to the capital outflow after the August 11th reform, the central bank has indeed taken the initiative to reduce its holdings of overseas securities investment.

The US Treasury Department has released data, which is only available in July. China's reduction of 30 billion 400 million of US Treasury bonds in the current period is very good in direction and even in scale.

At the same time, the data also tell us that the cash and deposits deposited by the central bank in other countries, the bank for International Settlements and IMF, increased by 8 billion 450 million US dollars and 570 million US dollars in 7, 8 and 8 months on the basis of US $12 billion 60 million in June.

It shows that the central bank has substantially increased cash and deposits in the same period to cope with the liquidity reserve needed for capital outflow.

For example, the central bank's foreign exchange holdings, which are released today by the Central Bank of China, have been released for nearly a month earlier than before. The effectiveness of information communication between the central bank and the market has been greatly improved.

To analyze the data below, in September, the central bank's foreign exchange quota decreased by 264 billion 142 million yuan, equivalent to 41 billion 500 million US dollars. The current central bank's foreign exchange reserve was reduced by 43 billion 200 million US dollars. The difference between the two is not very large, but considering that this data is far less than that of many well-known international investment banks, it is necessary to go deep into it.

In July this year, China's safe first announced that it would comply with the SDDS standard.

Then we can see a series of changes, especially the new "international reserve and foreign currency liquidity data template", which gives market participants a glimpse of more details of the operation of China's central bank's foreign exchange reserve.

Seen from the above table, the central bank's foreign exchange reserves (convertible foreign currencies) are classified as securities, currencies and deposits. Although there will be mark to market (adjusted by market price) factors, they will be disclosed from each month.

Changes can at least reveal the direction of changes in central bank positions.

This is far from enough. The above report also revealed that the Central Bank of China also used cash to buy back and reverse repurchase operations to adjust its position, and also made small trials in derivatives such as futures, futures and swaps.

In short, SDDS disclosed that the central bank had not known the outside world, and made its image more stereoscopic.

But it also reminds the relevant government departments that the international financial market is an extremely complex and professional environment. There are all kinds of high requirements for officials representing countries, but at the same time, they should be given higher honor and attention.