Forex Trans­ac­tion Deficit

Beijing Review - - This Week -

China’s deficit in for­eign ex­change trans­ac­tions for Fe­bru­ary rose from the amount reg­is­tered in Jan­uary.

Forex pur­chases by banks stood at $124.2 bil­lion, while sales stood at $132.5 bil­lion, a trans­ac­tion deficit of $8.2 bil­lion, up from $900 mil­lion in Jan­uary, ac­cord­ing to the State Ad­min­is­tra­tion of For­eign Ex­change (SAFE).

“Do­mes­tic forex sup­ply and de­mand stood gen­er­ally bal­anced last month,” SAFE said in a state­ment.

In the first two months of the year, Chi­nese banks bought $279.8 bil­lion of for­eign cur­rency and sold $288.9 bil­lion.

Fluc­tu­a­tion in for­eign ex­change trans­ac­tions is the main con­trib­u­tor to changes in China’s for­eign ex­change re­serves.

Re­serves came in at $3.1 tril­lion in Fe­bru­ary, down $27 bil­lion from Jan­uary.

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