Chinese banks report forex settlement deficit in August

BEIJING, Sept. 18 (Xinhua) — China’s commercial banks saw a net forex settlement deficit of 8.7 billion yuan (about 1.23 billion U.S. dollars) in August, official data showed on Wednesday.
In yuan terms, forex purchases by banks reached nearly 1.36 trillion yuan, while sales stood at about 1.37 trillion yuan, data from the State Administration of Foreign Exchange showed.
China’s cross-border capital flow has become more stable, with domestic foreign exchange supply and demand generally balanced, according to the administration.
With the continuous improvement of both the internal and external environments, the foreign exchange market is expected to become more stable, and market transactions will remain rational and orderly, the administration said.
In August, China’s foreign trade continued its upward trajectory, with the net inflow of funds under the goods trade category increasing 11 percent month on month. The net capital inflow into China’s domestic bond market continued to grow, said the administration.
China’s foreign exchange market is expected to maintain stable operations, bolstered by the country’s consolidated economic recovery and the market’s growing resilience, the administration said. ■