Chinese banks see net forex purchase in 2022

Chinese banks reported a net foreign exchange purchase and stable cross-border capital flows in 2022, an official with the country's forex regulator said Wednesday.

The banks recorded a net forex purchase of US$107.3 billion in 2022, said Wang Chunying, deputy head of the State Administration of Foreign Exchange.

China's currency, the renminbi, remained generally stable at a reasonable and equilibrium level last year, with its two-way fluctuation and strong flexibility, Wang said.

Current account and foreign direct investment surpluses helped stabilize cross-border capital flows, Wang noted, adding that China's current account is expected to record a surplus at a balanced level in 2023.

The administration's earlier data showed that China's forex reserves stood at US$3.1277 trillion at the end of 2022.