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MNI: China Banks Net FX Buyers From Clients In April - SAFE

MNI (London)
     BEIJING (MNI) - China banks were modest net purchasers of foreign exchange
from clients in April, reflecting relatively balanced cross-border capital
flows, according to the latest figures from the State Administration of Foreign
Exchange.
     China banks bought a net CNY92.4 billion from clients in April, the highest
since June 2014, compared with net sales of CNY16.5 billion in March, SAFE noted
on Friday. 
     As of end April, outstanding foreign reserves stood at $3.12 trillion, a
decrease of $17.97 billion from March, according to data from the People's Bank
of China. 
     The new forex forwards signed by customers this month to buy yuan from
banks in the future amounted to CNY169 billion -- CNY31.7 billion higher than
forward sales, the first positive balance since Aug 2017, reflecting increased
confidence in the yuan.
     The outstanding amount of forex forwards to sell yuan to banks fell to
CNY605 billion in April from CNY669.9 billion in March. 
     The steady development of China's economy has played a major role in
keeping cross-border capital flows balanced, and cross-border capital flow will
continue to be 'reasonably balanced' as the economy will continue to operate
stably, SAFE said via its website Friday.
--MNI Beijing Bureau; +86 10 85325998; email: he.wei@marketnews.com
--MNI London Bureau; tel: +44 203-586-2225; email: les.commons@marketnews.com
[TOPICS: MMQPB$,M$A$$$,M$Q$$$,MT$$$$]
MNI London Bureau | +44 203-865-3812 | les.commons@marketnews.com

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