Li Bin, Deputy Director of the State Administration of Foreign Exchange and news spokesperson, answered questions from reporters about the foreign exchange market situation in October 2025.

Question: How has the operation of China's foreign exchange market been since October? What are the characteristics and changes? Since October, there has been an increase in volatility in international financial markets, and the US dollar index has trended upwards overall. China's foreign exchange market has continued to maintain a stable operating trend. Firstly, the supply and demand in the foreign exchange market are basically balanced. In October, the surplus in bank foreign exchange settlement and sales was $17.7 billion, slightly narrowing compared to the previous month, making the settlement and sales more balanced. Entities such as enterprises have orderly conducted foreign exchange settlement and purchase transactions based on actual needs, and the settlement and sales rates are basically equivalent to the monthly average of the previous nine months. Secondly, cross-border capital flows have remained stable. Due to factors such as the National Day and Mid-Autumn Festival holidays, in September, non-bank sectors such as enterprises and individuals saw a small net outflow of cross-border funds, but in October, the net inflow of cross-border funds increased. Overall, the average monthly surplus in cross-border income and expenditure over the two months was $24 billion. Among them, the net inflow of funds in goods trade remained high; seasonal declines were seen in cross-border expenditures such as resident outbound travel and dividends paid by foreign-invested enterprises, while the net outflow of funds in service trade and investment returns narrowed compared to the previous month. Overall, China's foreign exchange market is expected to remain stable, with basic balance of supply and demand, maintaining strong resilience and vitality.