Chinese banks record forex settlement deficit in July

BEIJING -- China's commercial banks saw a net forex settlement deficit of 106.2 billion yuan ($14.8 billion) in July, data showed Tuesday.

Forex purchases by banks stood at about 1.2 trillion yuan, while sales reached 1.31 trillion yuan in the month, according to the State Administration of Foreign Exchange.

Between January and July, the country's banks posted a net forex settlement deficit of 91.8 billion yuan.

Wang Chunying, deputy head of SAFE, said at a press conference that forex market operations were "reasonable and orderly" in July and that forex supply and demand remained basically stable.

The official said the forex settlement deficit in July followed increased forex buying by market entities as the Chinese currency appreciated against the dollar in the month.

In July, the net inflow of cross-border capital under goods trade remained higher than the average level recorded in the first half of the year. The net inflow of cross-border capital via foreign direct investment in China rebounded in July, Wang said.