Recently, the State Administration of Foreign Exchange made a report of the appraisal about how banks followed regulation of foreign exchange management in 2016. IB stood out from 407 banks involved in the appraisal and got 'A' rating, becoming one of the six banks that got the highest rating among 21 national banks.
In 2016, confronted with intensively fluctuating international financial market, the State Administration of Foreign Exchange took into consideration the relation between guarding against the risk of cross-border capital flow and facilitating trade and investment, and safeguarded balance of international payments and national economic and financial security. Thus the overall Chinese foreign exchange market was stable and the cross-border capital flow showed a good trend.
As one of the main participating banks in domestic foreign exchange market, IB actively implemented policies of foreign exchange, centered upon the goal of 'international development', aimed at the central task of serving the real economy, stressed system construction, internal control and management as well as product and service innovations at the same time, and realized an organic integration of compliant management and business development. In 2016, IB fully implemented regulation of foreign exchange management. Sixteen of its first-level branches were rated as 'A' by the local Administration of Foreign Exchange and foreign exchange business saw better development.
As an essential participant at inter-bank foreign exchange market, IB has become one of the main market makers in terms of full range of products (including spot, forward, swap and option exchange businesses of exchange rate between RMB and other currencies). In 2016, IB ranked sixth in the market concerning comprehensive exchanges. C-Swap exchanges with the largest number of exchanges ranked second regarding comprehensive market making index, and has received awards for many consecutive years, including excellent member in foreign exchange market and excellent market making institution in foreign exchange market from Foreign Exchanges, and also was qualified as one of the first batch of quoting banks of volatility curve of RMB foreign exchange option and the market maker of direct exchange between RMB and South African rand, Swedish krona and Mexican peso.
Driving the real economy is IB's vital focal point in developing foreign exchange businesses. Based on product and service innovations, IB meets enterprises' demands of overseas financing and foreign exchange hedging, and helps them 'go out'. In 2016, the exchange rate saw more intensive fluctuation and enterprises met larger risks. IB utilized derivative products of exchange rate mainly including option products to help import and export-oriented enterprises hedge against fluctuation risk of exchange rate and lock financial costs. In that year, hedging business of exchange rate for clients reached RMB 198.9 billion. In addition, IB relied on Hong Kong Branch and FTZ platforms, and continued to make innovations in and enrich cross-border investment, financing and exchange product system of RMB and other currencies, and extended and tapped this system. The year of 2016 realized cross-border settlement of USD 86.1 billion as well as foreign exchange settlement and sales of USD 39.6 billion.