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 January 2026. SAFE Deputy Administrator and Press Spokesperson Li Bin answered media questions on foreign exchange market situation for January 2026.

Q: Could you brief us on China's foreign exchange market situation at the beginning of 2026? Are there any changes?

A: Since the beginning of this year, volatility and divergence in global financial markets have increased. China's foreign exchange market has continued to operate steadily. Cross-border capital has maintained a net inflow, although the scale has narrowed compared to the previous month. In January, the surplus of foreign exchange purchases and sales by banks, as well as the net cross-border capital inflow by enterprises, individuals and other non-banking sectors, decreased by 20% and 28% month-on-month, respectively. Influenced by seasonal factors, the pace of corporate receipts and foreign exchange purchases accelerated at the closing days of 2025 and the early beginning of 2026. As this demand was gradually met, the growth in corporate receipts and foreign exchange sales has slowed recently. By major channel, net capital inflows under trade in goods decreased by 27% month-on-month in January, while net outflows under trade in services increased by 23%. Net inflows under securities investment remained stable. Overall, China's foreign exchange market is characterized by active trading and stable expectations, with cross-border capital flows becoming more stable.