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

     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 London Bureau; tel: +44 203-586-2225; email: les.commons@marketnews.com

[TOPICS: MMQPB$,M$A$$$,M$Q$$$]