China’s State Administration of foreign exchange control stated that the capital outflow from China slowed in August, citing the fact that banks sold a smaller amount of foreign currency on the market during the month.
The regulator said that the net sale of foreign currency by banks to their customers was in August CNY21.7 billion. This was the lowest amount of currency sales this year. Recall, at the end of July net sales amounted to CNY131.9 billion.
The total volume of sales, including through transactions with clients and proprietary trading departments of banks, was at the level of $ 9.5 billion. SAFE said it was the lowest rate since July 2015 and by 70% compared with the previous month.
SAFE also noted that market participants were willing to sell their foreign exchange earnings to banks in August – 59.2% of customers sold their foreign exchange earnings, compared with 58.3% in July. Net receipts from foreign loans of Chinese companies accounted for $ 6.1 billion. In August, which was significantly higher than the average from May to July ($ 700 million).
According to SAFE, now the economy is stable, and the mood of Forex market participants is stable, which will contribute to a more balanced supply and demand in the currency market.
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