China’s SAFE: FX market running smoothly in August

China’s FX regulator, the State Administration of Foreign Exchange (SAFE) said on Friday, market players are acting in a rational manner and continue to sell forex on rallies, with stable expectations surrounding the yuan evident, state media Xinhua news agency reported.

Additional quotes

“The regulator suggested this will help stabilize the yuan at a balanced level. Since the start of August, both banks' forex settlement and sales and foreign-related receipts and payments have shown a surplus.”

“With a relatively high surplus in goods trading, the actual utilization of foreign capital continued to grow and foreign investors have bought Chinese securities on a net basis since the start of the month, reflecting the long-term investment value of yuan assets.”

Market reaction

USD/CNY is trading 0.10% higher on the day at 6.8560, at the press time, resuming the upside towards two-year highs of 6.8696 reached earlier this week.