Chinese Banks Experience Forex Settlement Surplus in October: Key Insights and Impact
Chinese Banks Report Forex Settlement Surplus in October
Source: China Daily
Overview of the Forex Settlement Data
- China's commercial banks recorded a forex settlement surplus of approximately $18.3 billion in October.
- Forex purchases totaled $216.4 billion, while sales were around $198.2 billion, according to the State Administration of Foreign Exchange (SAFE).
Market Stability and Expectations
- The forex market has operated steadily, with balanced supply and demand for foreign exchange.
- SAFE officials noted that market expectations and transactions remain "stable and orderly."
Foreign Trade Insights
- October saw a 9.7% month-on-month increase in net inflow of funds in the goods trade category, marking three consecutive months of historical highs.
- This growth is indicative of a recovery trend in China's foreign trade landscape.
Future Market Conditions
- Officials from SAFE expressed confidence that the Chinese foreign exchange market possesses the fundamentals to continue operating stably moving forward.