China’s banks report $121.3b forex deficit in ’24

China’s commercial banks reported a foreign exchange (FX) settlement deficit of $121.3 billion in the first three quarters of 2024, according to official data released Tuesday.

Li Hongyan, deputy head of the State Administration of Foreign Exchange, noted that cross-border capital flows are approaching equilibrium.

Despite the deficit, Li highlighted the resilience of the foreign exchange market, with stable market expectations, orderly transactions, and a broadly balanced RMB exchange rate.