(Yicai Global) March 17 -- Supply and demand of China’s foreign exchange were roughly balanced while cross-border capital flows took a turn for the better, according to the latest data from the State Administration of Foreign Exchange.
The foreign exchange settlement deficit at the Bank of China continued to narrow to USD10.1 billion, the administration said online, down 47 percent on the month and 70 percent on the year. The forward forex settlement had a USD4.7 billion surplus after a USD8 billion deficit the month before, while payments concerning foreign affairs in non-banking sectors flipped a 19-month deficit to a USD1.9 billion excess.
Cross-border capital flows were more positive last month, the administration said. Capital flow from trading had a net inflow, companies’ forex financing continued its recovery and domestic investors were more rational with purchases. In February, the ratio of bank customers’ forex purchasing to forex disbursement was 66 percent, down 5 percentage points from the month before.
As the financial market continues to make progress with its open-door policy, China’s cross-border flows will be more balanced, SAFE said, adding that the market will improve its ability to resist and adapt to its external environment in the future.
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