Chinese banks report forex settlement deficit in November

BEIJING - China's commercial banks posted a net forex settlement deficit of 39.6 billion yuan, or $5.6 billion, in November, the country's forex regulator said Friday.

The reading expanded from a deficit of 31.1 billion yuan registered in October, according to the State Administration of Foreign Exchange (SAFE).

Forex purchases by banks stood at 1.04 trillion yuan last month, while sales reached about 1.08 trillion yuan.

The data led to a forex settlement deficit of 399.9 billion yuan for the first 11 months of the year, according to the SAFE.

The forex settlement stayed stable in November as market demand and supply remained generally balanced, said SAFE spokesperson Wang Chunying.

The basic trend of the Chinese economy maintaining steady growth toward long-term sound development remains unchanged, Wang said, adding that high-quality economic development will offer a solid foundation for a stable forex market.