Li Bin, Deputy Administrator and Spokesperson of the State Administration of Foreign Exchange, Answers Questions from Reporters on the Foreign Exchange Market Situation in August 2026

Recently, the State Administration of Foreign Exchange (SAFE) released data on bank settlement and sales of foreign exchange and cross-border receipts and payments by banks on behalf of clients for August 2026. Li Bin, Deputy Administrator of SAFE and Spokesperson, answered reporters' questions on the foreign exchange market situation in August 2026. Since August, international financial markets have continued their volatile trajectory, with increased fluctuations in bond and foreign exchange markets in some economies, while China's foreign exchange market has operated steadily. Specifically: First, the scale of cross-border receipts and payments has continued to grow, with cross-border funds maintaining a net inflow. In August, cross-border receipts and payments by non-bank entities such as enterprises and individuals totaled USD 1.5 trillion, continuing the rapid growth trend seen since the beginning of this year. Cross-border funds recorded a net inflow of USD 62.4 billion, a slight month-on-month increase of 4%. From the perspective of major channels: First, the net inflow of funds under trade in goods was relatively large. Second, increased overseas study and travel during the summer vacation pushed the service trade deficit up by 6% month-on-month. Third, dividend and interest payments by foreign-invested enterprises narrowed by 23% month-on-month, falling back from the seasonal high. Fourth, cross-border two-way direct investment remained basically stable. Second, trading volume in the foreign exchange market increased steadily, and market expectations were generally stable. In August, the trading volume of the domestic foreign exchange market was USD 3.9 trillion, maintaining a relatively high level. Banks recorded a surplus of USD 48.5 billion in foreign exchange settlement and sales, mainly due to the net inflow of foreign exchange funds. The foreign exchange settlement ratio of enterprises' foreign exchange income for the month was 61.5%, 2.7 percentage points lower than the average level in the first seven months of this year. Enterprises' willingness to settle and hold foreign exchange was relatively stable, and market expectations were generally stable.