BEIJING--China's current account is expected to remain in a reasonable surplus in 2021 as demand for the country's goods will likely keep the trade balance in surplus even as trade in services gradually returns to normal with vaccine rollouts, said the foreign-exchange regulator on Friday.

The nation's current account will likely stay in surplus in the first quarter, based on preliminary data, though its size will be smaller than in the fourth quarter, said Wang Chunying, a spokeswoman for the State Administration of Foreign Exchange.

Chinese banks purchased a net $88.5 billion worth of foreign exchange in the first quarter, Ms. Wang said at a briefing.

She said the U.S. Federal Reserve's policy easing will have a shorter impact on Chinese markets and economy when compared with its last easing cycle, which was launched during the global financial crisis and lasted five years.

Also, China's total holdings of overseas debt is relatively small, which could help stabilize the domestic foreign-exchange market, she added.

Ms. Wang said the regulator has been closely monitoring the rapid rise in global commodity prices, which could increase foreign-denominated payments for China's imports.

She added Chinese companies have sharply increased their purchases of derivatives in the first quarter to hedge foreign-exchange and other financial risks.

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(END) Dow Jones Newswires

04-23-21 0045ET