Deputy Director and spokesperson of the State Administration of Foreign Exchange, Li Bin, answered questions from reporters about the foreign exchange market situation in July 2025.
Recently, the State Administration of Foreign Exchange released the data for bank foreign exchange sales and purchases as well as bank foreign exchange payments and receipts for July 2025. Deputy Director and spokesperson of the State Administration of Foreign Exchange, Li Bin, answered questions from reporters regarding the foreign exchange market situation in July 2025.
Question: How is the foreign exchange market situation in China in July 2025?
Since July, there has been increased volatility in the international foreign exchange market, with the US dollar index rebounding and then falling, leading to fluctuations in non-US currencies. China's foreign exchange market has maintained stable operations: firstly, market expectations and transactions are stable and orderly. In July, the scale of bank purchases and sales of foreign exchange increased by 12% and 16% respectively compared to the previous month, with a continuing surplus in the balance of payments, totaling $22.8 billion. The exchange rates for entities such as enterprises and individuals have slightly risen compared to the previous month, while the sales rates have remained stable, indicating a stable market expectation and active trading. Secondly, overall cross-border capital flows are stable. In July, the scale of cross-border income and expenditures for non-bank sectors such as enterprises and individuals reached historical highs, with a balanced income and expenditure. Net inflows of funds from goods trade increased by 33% compared to the previous month, maintaining a high level of operation; while net outflows of funds from service trade and investment income increased by 34% and 7% respectively, mainly due to seasonal factors such as residents traveling abroad during the summer vacation and high dividends and payouts by enterprises. China's economy is steadily progressing towards high-quality development, coupled with the increasing resilience of the foreign exchange market, which will provide strong support for maintaining stable operations in the foreign exchange market.
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