China’s banks post $48.5B FX settlement surplus in August on net inflows
China's State Administration of Foreign Exchange (SAFE) reported a $48.5 billion surplus in bank foreign exchange settlement and sales for August 2026, driven by net inflows. Total cross-border receipts and payments by non-bank sectors reached $1.5 trillion, with net inflows of $62.4 billion, up 4% month-on-month. Goods trade net inflows remained high, while the services trade deficit rose 6% due to summer travel. Dividend payments by foreign-invested enterprises fell 23% from seasonal highs. The corporate FX settlement rate was 61.5%, indicating stable market expectations.
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China Cross-Border Banking Liquidity: Current Account Drives Inflows, FX Settlement Willingness Rebounds Sharply in August
This report by GF Securities analyzes China's August 2026 cross-border capital flows based on SAFE data. It finds that bank client cross-border receipts and payments, as well as FX settlement and sales, improved significantly. The current account surplus remained high, driven by strong goods trade exports, while dividend outflows from foreign firms declined seasonally. Net FX settlement by banks surged to 352.4 billion yuan, with the settlement rate rising to 62.39% and the purchase rate falling to 59.87%. The report attributes the improvement to a sharp rebound in settlement willingness and a drop in purchase willingness. Looking ahead, it forecasts that cross-border liquidity may enter a period of volatility due to geopolitical tensions in the Middle East, the Fed's first rate hike in three years, and a strong dollar. However, it expects strong export demand to persist at least until the first half of 2027, providing a buffer against financial account fluctuations. The report recommends focusing on export-related sectors given rising market risk aversion.
Read sourceChina's Foreign Exchange Market Stable in August 2026, SAFE Reports Net Inflows
On September 15, 2026, Li Bin, Deputy Administrator and Spokesperson of China's State Administration of Foreign Exchange (SAFE), briefed reporters on the foreign exchange market situation for August 2026. Despite continued volatility in international financial markets, China's foreign exchange market remained stable. Key data points include: total cross-border receipts and payments by non-bank sectors reached USD 1.5 trillion, sustaining rapid growth; net cross-border fund inflows were USD 62.4 billion, a slight month-on-month increase of 4%. Goods trade net inflows remained high, while the services trade deficit rose 6% month-on-month due to summer travel. Dividend payments by foreign-invested enterprises fell 23% month-on-month from seasonal highs. Bilateral cross-border direct investment was largely stable. Domestic foreign exchange market trading volume hit USD 3.9 trillion. The surplus in bank foreign exchange settlement and sales was USD 48.5 billion. Enterprises' conversion rate of foreign exchange income into RMB was 61.5%, 2.7 percentage points lower than the first seven months' average, indicating stable market expectations.
Read sourceChina's SAFE Spokesperson Reports Stable Foreign Exchange Market in August 2026
On September 15, 2026, Li Bin, Deputy Administrator and Spokesperson of China's State Administration of Foreign Exchange (SAFE), briefed reporters on the foreign exchange market situation for August 2026. Despite continued volatility in international financial markets, China's foreign exchange market remained stable. Key data points include: total cross-border receipts and payments by non-bank sectors reached USD 1.5 trillion, with net inflows of USD 62.4 billion, a 4% month-on-month increase. Net inflows under goods trade remained high, while the services trade deficit rose 6% month-on-month due to summer travel. Dividend payments by foreign-invested enterprises fell 23% month-on-month. The domestic foreign exchange market trading volume was USD 3.9 trillion. The surplus in bank foreign exchange settlement and sales was USD 48.5 billion. The rate at which enterprises converted foreign exchange income into RMB was 61.5%, 2.7 percentage points lower than the average for the first seven months of the year, indicating stable market expectations.
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China's Banks Post $48.5B FX Settlement Surplus in August on Net Inflows
According to a Cailian Press report on September 15, the State Administration of Foreign Exchange (SAFE) released data showing that China's banks recorded a $48.5 billion surplus in foreign exchange settlement and sales in August 2026. SAFE Deputy Administrator and Spokesperson Li Bin stated that the surplus was primarily driven by net inflows of foreign exchange funds. Total cross-border receipts and payments by non-bank sectors reached $1.5 trillion, with net inflows of $62.4 billion, up 4% month-on-month. Key channels included high net inflows under goods trade, a 6% month-on-month rise in the services trade deficit due to summer travel, a 23% month-on-month narrowing of dividend payouts by foreign-invested enterprises, and stable bilateral cross-border direct investment. The domestic foreign exchange market transaction volume was $3.9 trillion. The corporate foreign exchange settlement rate was 61.5%, 2.7 percentage points lower than the average for the first seven months of 2026, indicating stable willingness to settle or hold foreign exchange and generally steady market expectations.
Read sourceChina August Bank Forex Settlement Surplus Hits $48.5 Billion, SAFE Says
China's foreign exchange regulator, the State Administration of Foreign Exchange (SAFE), reported that the country's banks recorded a net foreign exchange settlement and sales surplus of $48.5 billion in August. This data point reflects the flow of foreign currency through the banking system, indicating continued net inflows of foreign exchange into China during the month. The figure is a key indicator of cross-border capital movements and market sentiment regarding the yuan. The report was issued by SAFE, the official body overseeing China's foreign exchange policies and balance of payments.
Read sourceChina's Banks Settled 1.709 Trillion Yuan in Forex in August 2026
According to data released by the State Administration of Foreign Exchange (SAFE) on September 15, 2026, Chinese banks settled foreign exchange worth RMB 1.709 trillion and sold foreign exchange worth RMB 1.38 trillion in August 2026. For the January-August 2026 period, cumulative bank foreign exchange settlements reached RMB 14.3111 trillion, while sales totaled RMB 11.9848 trillion. In USD terms, August settlements were $251.8 billion and sales $203.3 billion; cumulative settlements from January to August were $208.34 billion and sales $174.55 billion. Additionally, banks received cross-border payments on behalf of clients totaling RMB 5.2718 trillion in August, with external payments of RMB 4.8486 trillion. Cumulative client-related cross-border receipts from January to August reached RMB 43.5846 trillion, and external payments were RMB 41.048 trillion. The data provides a snapshot of China's foreign exchange flows and cross-border payment activity.