(Yicai Global) Nov. 20 -- China's domestic bank foreign exchange settlement totaled CNY975.6 billion (USD139 billion) and exchange sales were CNY1 trillion (USD142.2 billion) last month, and the settlement and sales deficit was thus CNY31.1 billion (USD4.4 billion), per data the State Administration of Foreign Exchange released yesterday.
The bank forex settlement and sales deficit was lower last month than the average of the first nine months, SAFE Spokesperson and Chief Economist Wang Chunying announced yesterday, adding non-banking agencies such as companies and individuals had a USD10.9 billion surplus in foreign related receipts and payments last month compared with a small deficit from March to September.
Supply and demand in China's domestic forex market basically balanced last month, factoring in other supply-demand factors such as future forex settlement and sales and options trading, Wang noted, adding the market's rational and orderly forex trading will facilitate an ongoing balance of supply and demand, Wang noted.
The forex supply from major inflow channels steadily increased, e.g. the cross-border goods trade balanced, and the settlement and sales surplus rose from the previous month and the same period last year, she said, adding foreign direct investment and cross-border securities investment inflows into China continued to climb from a year before.
Conversely, major forex outflow channels showed steady demand, with cross-border service trade expenditures and forex purchases falling steadily last month, down 6 percent and 14 percent respectively from September. A decrease in personal traveling expenditures and individual forex purchases were the main causes of the decline, while cross-border capital outflows and forex purchases for outward foreign direct investment remained basically stable, she explained.
Editor: Ben Armour