Chinese banks' net forex sales plummet in August

BEIJING - Chinese banks saw their net foreign exchange sales dropped by 70 percent from July to $9.5 billion in August, official data showed Monday.

Chinese lenders bought $125.7 billion worth of foreign currency last month and sold $135.2 billion, the State Administration of Foreign Exchange (SAFE) said in a statement.

The amount of net sales in August was the lowest since July 2015.

A SAFE spokesperson attributed the decrease largely to seasonal factors as forex demand had been satiated the previous month as many foreign companies in China remit profits overseas in July, which is also the high season for overseas travels.

Despite the monthly drop, the forex market remains calm, the spokesperson said, predicting stable and more balanced capital flow in the long term.