BEIJING, Aug. 18 (Xinhua) — China’s foreign exchange market sustained a stable run in July, with the overall trend in line with market expectations, experts said on Tuesday when commenting on July forex data.
According to the State Administration of Foreign Exchange (SAFE), banks’ forex settlement reached 266.3 billion U.S. dollars, while sales stood at 248 billion dollars in July, yielding a surplus of 18.3 billion dollars. In the first seven months of 2026, cumulative settlement totaled 1,831.6 billion dollars against sales of 1,542.2 billion dollars, posting a surplus of 289.4 billion dollars.
The balanced supply-demand picture was underpinned by steady expansion in cross-border transactions. Cross-border receipts and payments by non-bank institutions, including enterprises and individuals, totaled 1.7 trillion dollars in July, surging 20 percent year on year, with a net capital inflow of 59.8 billion dollars. The country’s forex market trading volume also climbed 8 percent from a year earlier to 4.3 trillion dollars, remaining at a high level.
Li Bin, deputy head and spokesperson of SAFE, said that since July, despite a complex and volatile external environment, heightened geopolitical uncertainties and continued fluctuations in international financial markets, China’s forex market has remained stable with steady growth in cross-border receipts and payments.
Market expectations were generally stable and foreign exchange transactions were rational and orderly, Li added, noting that net inflows under goods trade stayed high, while net outflows under services trade and profit repatriation by foreign-invested enterprises were stable, contributing to the overall balance.
Zhao Qingming, a specialist in international finance, said the bank settlement and sales surplus in July was in line with market expectations, with no abnormal one-sided fluctuations observed.
“On the one hand, China’s foreign trade has long demonstrated strong resilience, with a sustained surplus under goods trade providing stable supply to the domestic forex market and offering fundamental support for the settlement and sales surplus,” Zhao said.
“On the other hand, the renminbi exchange rate has continued to fluctuate in both directions while remaining generally stable. Market entities have generally adopted behavioral patterns of early settlement, delayed purchase of foreign exchange and postponed external payments, which helps maintain a balanced supply-demand dynamic in the forex market,” Zhao added.
Zhao said the current forex market supply and demand are in a broadly balanced state, and while the renminbi exchange rate is experiencing two-way fluctuations, the amplitude is moderate with prominent stability characteristics.
Going forward, the forex market is expected to maintain a stable and orderly operating state, Zhao added. ■
