1. China’s forex sales sharply declined in September

China’s forex sales sharply declined in September

Chinese banks saw a combined net foreign exchange sales of USD 14.6 billion in October, sharply down from September, as capital flight pressure eased last month, official media here reported today.

By: | Beijing | Published: November 16, 2016 5:46 PM
Chinese lenders bought USD 107.9 billion worth of foreign currency in October and sold 122.5 billion dollars, resulting in a 49-per cent month-on-month decline in net forex sales, according to data from the State Administration of Foreign Exchange (SAFE).  (Representative image: Reuters) Chinese lenders bought USD 107.9 billion worth of foreign currency in October and sold 122.5 billion dollars, resulting in a 49-per cent month-on-month decline in net forex sales, according to data from the State Administration of Foreign Exchange (SAFE). (Representative image: Reuters)

Chinese banks saw a combined net foreign exchange sales of USD 14.6 billion in October, sharply down from September, as capital flight pressure eased last month, official media here reported today.

Chinese lenders bought USD 107.9 billion worth of foreign currency in October and sold 122.5 billion dollars, resulting in a 49-per cent month-on-month decline in net forex sales, according to data from the State Administration of Foreign Exchange (SAFE).

Non-bank companies and individuals contributed USD 10.2 billion of the net forex sales, down 62 per cent from September, state-run Xinhua news agency reported.

A SAFE statement said October saw less capital outflow pressure, citing such factors as reduced seasonal demand for forex purchases, increased overseas investment in the domestic bond market and a larger trade surplus.

Customs figures show China’s foreign trade surplus rose 17 per cent month on month to USD 49.1 billion  in October.

As China’s economy has further stabilised in recent months and its structure continues to improve, cross-border capital flows will remain stable in the medium and long term, the statement said.

The country’s manufacturing sector expanded at its fastest pace in more than two years in October, while fixed-asset investment rose 8.3 per cent year on year in January-October, higher than market expectations of 8.2 per cent.

In the first 10 months of the year, Chinese banks saw a total net forex sales of USD 258 billion, according to SAFE.

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