Chinese banks rake in forex settlement surplus in H1
Updated 18:24, 23-Jul-2021

China's commercial banks saw a net forex settlement surplus of 876 billion yuan (about $135.6 billion) in the first half this year (H1), the country's forex regulator said Friday.

Forex purchases by banks stood at 7.83 trillion yuan from January to June, while sales came in at 6.95 trillion yuan, data from the State Administration of Foreign Exchange (SAFE) showed.

In June alone, commercial banks saw a net forex settlement surplus of 141.3 billion yuan.

Judging from the real economy, financial market and international balance of payments, the country currently holds pronounced upsides in dealing with changes in the external environment, said Wang Chunying, deputy director and spokesperson of the SAFE, at a press briefing Friday.

"The exchange rate of China's currency, the renminbi, or yuan, has remained basically stable at a reasonable and balanced level this year. Two-way fluctuations, either appreciation or depreciation, of the yuan will become the norm in the future."

The impact of the U.S. Federal Reserve's monetary policy adjustment on China's cross-border capital flows is generally controllable, Wang said.

Wang added China's current account surplus remained within a reasonable range in the January-June period and will continue to be in an equilibrium range in the future.

China's stocks have relatively low price-to-earnings ratios compared with developed markets and most emerging economies, hence the stock market has a relatively high investment value, the spokesperson said.

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