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China sees forex settlement deficit

Xinhua, September 17, 2015 Adjust font size:

China continued to see a foreign exchange (forex) settlement deficit in August, indicating forex was flowing out of the country at the retail level.

Chinese banks sold 250.4 billion U.S. dollars' worth of foreign currencies to individuals and institutions, and bought 206.9 billion U.S. dollars from them, resulting in a net sale of 43.5 billion last month, data from the State Administration of Foreign Exchange said on Thursday.

The forex settlement deficit came in at 192.3 billion U.S. dollars in the first eight months of 2015.

Forex settlement is one of the main sources of cash to the forex reserves, which declined by 93.9 billion U.S. dollars in August, the fourth-consecutive monthly drop. Endi