China's Forex Market Posts Steady July Despite Global Uncertainty

China's foreign exchange market saw steady growth in July, according to data from industry officials and analysts. The country posted a surplus of $18.3 billion in bank settlements, with banks handling $266.3 billion in foreign exchange settlement against $248.0 billion in sales.

The cumulative settlement from January to July reached $1.8316 trillion, with sales totaling $1.5422 trillion, resulting in a surplus of $289.4 billion. Cross-border receipts and payments by non-bank entities rose by 20% year-on-year to around $1.7 trillion, with a net inflow of $59.8 billion.

Experts attribute the market's resilience to steady expectations among market participants, robust net inflows under goods trade, and stable patterns in services trade and profit remittances. Li Bin, deputy administrator and spokesperson of the State Administration of Foreign Exchange (SAFE), has emphasized the sector's stability and normalization of cross-border transactions.

Analysts expect the market to continue exhibiting two-way fluctuations within a stable range, with fundamentals in trade and investment underpinning balanced flows provided global conditions do not deteriorate materially.