China Feb net forex purchases at 42.2b yuan

BEIJING -- China's central bank and financial institutions spent 42.2 billion yuan ($6.85 billion) on foreign exchange purchases in February, data from the central bank showed on Wednesday.

The data ended two months of net sales seen in January and December, easing worries of massive capital outflow from the country.

As of the end of February, Chinese financial institutions' total yuan funds outstanding for foreign exchange totaled 29.34 trillion yuan, according to the People's Bank of China.

As the Chinese currency is not freely convertible under the capital account, the central bank has to purchase foreign currency generated by China's trade surplus and foreign investment into the country from commercial banks, adding funds to the money market.

Separate data from China's foreign exchange regulator showed Chinese banks sold a net 105.4 billion yuan worth of foreign exchange to customers in over-the-counter transactions in February.