Tag / Balance of trade

by Mike Poverello

Chinese Imports surge – outpace Exports

Port of Shanghai

Port of Shanghai

China’s exports rose 25 percent in January from a year earlier while imports increased 28.8 percent, resulting in a trade surplus of $29.15 billion, the customs administration said today in Beijing.

The growth in overseas shipments compares with the median estimate in a Bloomberg News survey for a 17.5 percent expansion and a 14.1 percent increase the previous month.

The gain in imports compares with the median estimate for a 23.5 percent jump and a 6 percent increase in December. The trade surplus compared with the median projection for $24.7 billion and a $27.1 billion excess a year ago.

The Chinese customs administration last month defended the quality of its trade data after analysts at Australia & New Zealand Banking Group Ltd. and UBS AG said it may fail to capture the true picture of imports and exports.

Trade data in the first two months of the year is distorted by the timing of the Lunar New Year holiday, which fell in January in 2012 and is in early February this year, making the figures tough to interpret, according to economists including Louis Kuijs, chief China economist at Royal Bank of Scotland Plc in Hong Kong. Source: Bloomberg

by Mike Poverello

SA Reserve Bank scraps Form F1.78

The Financial Surveillance Department of the South African Reserve Bank has announced that the electronic export monitoring system will be implemented on 3 January 2011 and that the Forms F178 will be withdrawn from that date.

Consequently, exporters will be exempted from the provisions of Exchange Control Regulation 6(10)(a) and Authorised Dealers will no longer be required to confirm the receipt of export proceeds, unless directed to do so by the Financial Surveillance Department.

As a further administration relief to Authorised Dealers, all attested Forms F178 not acquitted by 3 January 2011, may be disregarded. Exchange Control Regulations 6(10)(a), (b) and (c) will, in due course, be amended and the reference to the Form F178 withdrawn.

The electronic export monitoring system is dependent on the correct capturing and reporting of the mandatory Exporter Code and the Unique Consignment Reference (UCR).

The introduction of the electronic export monitoring system will necessitate a number of changes to the Exchange Control Rulings, which amendments will be made in due course.