Emirates News Agency – Chinese banks log forex settlement surplus in January

BEIJING, 16th February, 2023 (WAM) — China’s banks saw a net forex settlement surplus of US$2.5 billion in January, according to the country’s forex regulator, Xinhua News Agency reported.

Forex purchases by banks totalled US$175.3 billion and sales hit US$172.8 billion, data from the State Administration of Foreign Exchange (SAFE) showed.

“Overall, China’s forex market got off to a good start in 2023, with steady expectations from market entities and rational and orderly trading,” Wang Chunying, deputy director and spokesperson of SAFE, said.

In January, foreign trade in goods registered a surplus of US$38.7 billion, up 9 percent over the previous month, SAFE data showed.

Wang noted that overseas capital is actively participating in the stock market on the Chinese mainland, as the country’s economic recovery takes hold under optimised COVID-19 response and pro-growth policy measures.

Net equities purchased by overseas investors hit a single-month record of US$27.7 billion in January, the data showed.

China’s forex market will soon have a better foundation and more conditions to maintain steady operations as the appeal of Chinese yuan assets strengthens, backed by sound long-term economic fundamentals, Wang said.