China's forex market stable since August

BEIJING - China's foreign exchange market is generally stable, with banks reporting a net forex settlement surplus since August, the State Administration of Foreign Exchange (SAFE) has said.

Affected by the rapid rise of the US dollar index, non-US currencies have generally depreciated. However, the exchange rate of the Chinese currency, the renminbi (RMB), is relatively stable and its variation range is much lower than that of other major currencies.

China's foreign exchange market has shown strong resilience, according to SAFE. The country's trade in goods maintained a relatively high surplus, and its foreign direct investment in actual use continued to grow.

In addition, the overall net purchase of Chinese securities by foreign investors since August reflects the long-term investment value of RMB assets.

China's forex market participants are becoming more rational, and the exchange rate expectation is stable at present, which is helping the RMB exchange rate remain basically stable at a reasonable and balanced level, SAFE said.