Chinese banks report net forex purchase in February

Chinese banks saw a net foreign exchange purchase last month, data from the country's forex regulator showed Friday.

Chinese lenders bought 160.1 billion U.S. dollars worth of foreign currencies and sold 155.9 billion dollars' worth in February. It resulted in a net purchase of 4.2 billion dollars, said the State Administration of Foreign Exchange (SAFE).

There continued to be net inflows of cross-border capital related to the real economy last month, with net inflows from cross-border goods trade up 41 percent year on year to 25.7 billion dollars, according to Wang Chunying, deputy head of the SAFE.

Wang noted that facing external complexities, COVID-19 pandemic and mounting inflation made it more difficult for countries to adjust their monetary policies.

As China's economy continues to recover steadily, its fundamentals will continue to serve as a solid foundation for the basic balance of international payments and overall stability of the foreign exchange market, Wang added.

Earlier data showed China's foreign exchange reserves came in at more than 3.21 trillion dollars at the end of February, down 0.24 percent from the end of January.