The State Administration of Foreign Exchange (SAFE) has recently released the data on the purchases and sales of foreign exchange by banks and the cross-border receipts and payments by non-banking sectors for August 2025. SAFE Deputy Administrator and Spokesperson Li Bin answered media questions on foreign exchange market situation for August 2025.
Q: How would you assess China’s foreign exchange market situation in August 2025?
A: China’s foreign exchange market operated smoothly in August. First, market transactions remained active. The cross-border receipts and payments by enterprises, individuals and other non-banking sectors reached USD 1.3 trillion in August, representing a year-on-year increase of 8%. Specifically, the cross-border receipts and payments under both the current account and the financial account registered growth, while cross-border trade, investment and financing maintained steady development. Second, the supply and demand of the foreign exchange market remained balanced in general. In August, the net cross-border capital inflow reached USD 3.2 billion, while the foreign exchange purchases and sales by banks registered a surplus of USD 14.6 billion. By component, the net inflow of funds under trade in goods remained stable, overseas investors generally recorded net purchases of domestic stocks and bonds, and the net outflows of funds for trade in services and investment income eased back from seasonal highs. Overall, China’s foreign exchange market transactions remained active, the supply and demand of foreign exchange were basically in equilibrium, and market expectations exhibited stability.