Chinese banks post forex settlement deficit in July

21 August, 2019 12:00 AM printer

BEIJING: China's commercial banks saw a net forex settlement deficit of 42.3 billion yuan, or 6.1 billion U.S. dollars, in July, the country's forex regulator said Monday.

The reading shrank from a deficit of 132.8 billion yuan reported in June, according to the State Administration of Foreign Exchange (SAFE), reports Xinhua.

Forex purchases by banks stood at 1.11 trillion yuan last month, while sales reached about 1.15 trillion yuan.

The data led to a forex settlement deficit of 267.1 billion yuan for the first seven months of the year, according to the SAFE.

Commenting on the data, spokeswoman Wang Chunying said the commercial banks' forex sales and purchases had become more balanced, and the forex market had remained stable.

Despite the fluctuations of the global financial markets this month, Wang said the country's cross-border payments had remained generally stable, evidence that the country's sound economic fundamentals provided support for the stability of the forex market.