China has registered net capital inflow so far this month and the basis for the foreign exchange market stability will become more solid upon positive changes in economic fundamentals, the State Administration of Foreign Exchange said on Friday.
The country”s current account — a key pillar of China’s foreign exchange market stability — is expected to maintain a reasonable size of surplus this year, which stood at roughly $55 billion in the July-August period according to preliminary statistics, said Wang Chunying, deputy head and spokeswoman of SAFE.
Also, major developed economies’ monetary tightening is close to the end, which will also ease the spillover effect on the international financial market, Wang said in a statement on Friday.
Wang’s comments came in as SAFE released the data on foreign exchange settlements and sales by banks in September, which stood at $176.9 billion and $190.3 billion, respectively.
In the third quarter, the country’s foreign exchange market has remained resilient as the renminbi strengthened against a basket of currencies though slightly weakening against the strong US dollar, Wang added.
