China’s FX regulator says commercial banks bought $8.3bn of forex in June vs $3.3bn in May

China’s State Administration of Foreign Exchange:

  • Commercial banks purchase net $8.3 bln of forex in June vs $3.3 bln
    net purchase in May
  • Commercial banks
    purchase net $1.8 bln of forex in H1

The yuan weakened persistently in June.

The State Administration of Foreign Exchange (SAFE) of the People’s Republic of China

  • is responsible for drafting rules and regulations related to foreign exchanges, managing China’s foreign exchange reserves, and monitoring the balance of payments and the foreign exchange market
  • conducts foreign exchange business, including the management of the state foreign exchange reserves and gold reserves, and the administration of the foreign exchange settlement and sales
  • supervising and inspecting the foreign exchange activities of banks and other financial institutions, as well as of all enterprises and individuals
  • implementing foreign exchange policy and managing foreign exchange reserves to maintain the value of the national currency, the Renminbi (RMB)
  • regulating the foreign exchange market to prevent and resolve financial risks

SAFE operates under the leadership of the People’s Bank of China (PBOC).

This article was written by Eamonn Sheridan at Source