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 May 2026. SAFE Deputy Administrator and Press Spokesperson Li Bin answered media questions on foreign exchange market situation for May 2026.
Q: What were the main features and changes in China’s foreign exchange market in May?
A: Since May, global financial markets have continued to experience volatility and adjustments, while China's foreign exchange market has remained generally stable. The market showed three main features:
First, foreign-related transactions remained active. In May, the total cross-border receipts and payments of non-banking sectors, including enterprises and individuals, reached USD 1.5 trillion, up by 22% year on year. Foreign exchange market trading volume stood at USD 3.4 trillion, broadly comparable to the level recorded in the same period last year.
Second, net cross-border capital inflows remained broadly stable. In May, non-banking sectors, including enterprises and individuals, recorded net cross-border capital inflows of USD 62.5 billion, up slightly by 1% month on month. Banks registered a surplus of USD 35.8 billion in purchases and sales of foreign exchange, down by 11% from the previous month. Among them, trade in goods remained the main channel for net capital inflows, trade in services continued to record a deficit, dividend and profit remittance payments by foreign-invested enterprises increased seasonally, and foreign investors were net buyers of domestic stocks and bonds overall.
Third, foreign exchange market expectations remained stable. In May, the foreign exchange settlement ratio for foreign exchange receipts and the foreign exchange purchase ratio for foreign exchange payments by enterprises and other market participants were both broadly unchanged from the previous month, indicating that the willingness of various market players to settle and purchase foreign exchange stayed stable, and that related transactions were carried out in an orderly manner mainly based on actual needs.
