China banks’ June net FX purchases jump to $56.6B from $35.8B

Commercial banks’ foreign-exchange buying increased sharply from May, a move the FX regulator data framed as a sign that capital flows are accelerating.

Summary

China’s commercial banks net bought $56.6 billion in foreign exchange in June, up sharply from $35.8 billion in May, based on data cited from the country’s FX regulator (foreign-exchange regulator). The increase points to faster-moving capital flows, a closely watched signal for currency demand, cross-border settlement and broader financial conditions.

Terms & Concepts
  • foreign exchange: Conversion and trading between currencies.
  • capital flows: Money moving across borders for trade or investment.
  • FX regulator: Government body overseeing foreign-exchange activity.