Core Viewpoint - The National Foreign Exchange Administration (NFA) has made significant progress in enhancing the quality and efficiency of foreign exchange services for the real economy, with a focus on supporting stable foreign trade development, deepening cross-border investment and financing reforms, and promoting the construction of free trade pilot zones [2][3]. Group 1: Achievements in Foreign Exchange Management - In the past year, the NFA implemented 28 measures across three comprehensive policy packages, resulting in over $220 billion in facilitated transactions [2]. - The number of banks participating in foreign exchange business reforms increased from 16 at the end of 2024 to 30, covering major banks handling cross-border transactions [2]. - The total cross-border income and expenditure for enterprises and individuals is projected to reach $15.6 trillion in 2025, a nearly 10% increase from 2024 [3]. Group 2: Currency Risk Management - Companies' awareness and capability in managing currency risk have improved, with the scale of using foreign exchange derivatives exceeding $1.9 trillion in 2025, nearly doubling since 2020 [4]. - The foreign exchange hedging ratio for enterprises increased by 8 percentage points to 30% compared to 2020 [4]. Group 3: Future Outlook for Foreign Exchange Market - The foreign exchange market is expected to operate steadily in 2026, with cross-border capital flows remaining orderly and resilient [5]. - The NFA plans to enhance monitoring of cross-border capital flows and improve macro-prudential management to maintain stability in the foreign exchange market [5]. Group 4: Continued Reform and Opening-up - The NFA aims to deepen foreign exchange facilitation reforms and enhance the openness of the foreign exchange sector, supporting win-win cooperation [7][8]. - Policies will be introduced to better support enterprises in going global and developing foreign trade, including the management of cross-border capital operations for multinational companies [8][10]. Group 5: Enhancing Financial Services - The NFA will continue to optimize trade foreign exchange business management and support the development of new trade formats such as cross-border e-commerce [7]. - There will be a focus on promoting digital services and improving the efficiency of foreign exchange management to support high-quality development of the real economy [10].