China’s foreign exchange market maintained notable stability throughout May despite ongoing turbulence in global financial markets, according to the State Administration of Foreign Exchange. Activity in foreign-related transactions was strong, with cross-border receipts and payments by enterprises, individuals, and other non-banking entities reaching about 1.5 trillion U.S. dollars. This marks a significant 22 percent increase compared to the same period last year.
The overall transaction volume in China’s forex market stood steady at approximately 3.4 trillion dollars in May, mirroring figures from the previous year. Cross-border capital inflows remained robust, with enterprises, individuals, and non-banking sectors reporting net inflows of 62.5 billion dollars—up slightly by 1 percent from April. Conversely, banks experienced a decline in their foreign exchange settlement surplus, which dropped by 11 percent to 35.8 billion dollars compared to the prior month.
Trade in goods continued to be the primary driver behind China’s net capital inflows within the forex market. However, trade in services showed a deficit during this period. Seasonal factors also influenced the market, as foreign-funded enterprises increased dividend payments. Foreign investors demonstrated confidence by making net purchases of domestic stocks and bonds overall, contributing to a balanced market performance.
Market sentiment remained steady throughout May, with participants consistently willing to settle and purchase foreign currency according to actual demand. Transactions proceeded smoothly and orderly, reflecting a well-regulated forex environment amid external uncertainties and global financial fluctuations.
Meanwhile, on June 15 in Taipei’s foreign exchange market, the U.S. dollar weakened against the Taiwan dollar. The greenback fell by NT$0.054 to close at NT$31.564 during the trading session. Daily trading turnover reached approximately US$1.222 billion. The U.S. dollar opened at NT$31.550, dipped to a low of NT$31.506 before slightly recovering by the session’s close.
These contrasting regional movements illustrate varying dynamics within Asian forex markets amid broader global financial instability. While China’s forex market demonstrated resilience and stability, the U.S. dollar faced depreciation pressures in Taipei due to distinct local economic factors and investor sentiment.
Overall, despite fluctuations in certain currencies such as the U.S. dollar against regional counterparts, major Asian forex markets exhibited resilience and maintained orderly operations during this challenging period on the international stage.
