China's foreign exchange market remained sound in October with relatively balanced supply and demand in the market, said the State Administration of Foreign Exchange (SAFE) on Monday.
In October, banks in China saw 1.5194 trillion yuan (about 214 billion U.S. dollars) in foreign exchange settlement and 1.394 trillion yuan (about 196 billion U.S. dollars) in foreign exchange sales.
Regarding the foreign exchange market situation in October, despite increased volatility in international financial markets and a generally strengthening U.S. dollar index since the same month, China's foreign exchange market has maintained stable and sound operation, according to the SAFE.
The foreign exchange market maintained basic equilibrium in supply and demand during October. The foreign exchange settlement surplus stood at 17.7 billion U.S. dollars, narrowing from the previous month and showing a more balanced condition.
Enterprises and other entities bought or sold foreign currencies in an orderly manner based on actual needs, with banks' buying and selling rates remaining broadly in line with the average level of the first nine months.
Meanwhile, cross-border capital flows remained stable. Affected by the country's National Day and Mid-Autumn Festival holidays from Oct 1 to 8, the non-banking sector including enterprises and individuals saw a small net cross-border capital outflow in September, while October witnessed increased net cross-border capital inflows. The average monthly cross-border payment surplus over the two months stood at 24 billion U.S. dollars.
Specifically, goods trade maintained high net capital inflows, while cross-border expenditures such as resident outbound travel and dividend payments by foreign-invested enterprises saw seasonal declines. The net outflow of services trade and investment income narrowed compared with the previous month.
China's foreign exchange market maintains steady operation in October
