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      China's Commercial Banks Acquire $289 Billion in Foreign Exchange in First Half of 2026

      China's commercial banks acquired a net total of $289.4 billion in foreign exchange from January to July 2026, as reported by the State Administration of Foreign Exchange (SAFE). This significant figure highlights the robust currency flow within the country, driven by increasing cross-border trade activity.

      In the first half of 2026, total cross-border receipts and payments reached $9.2 trillion, marking a 21% increase compared to the same period last year. The yuan's role in these transactions has also grown, with its share of cross-border receipts and payments rising to 52.9%, indicating that more than half of China's international trade is now settled in its own currency.

      Despite the substantial forex purchases by commercial banks, China's official foreign exchange reserves remained stable at $3.4163 trillion at the end of June 2026. The banking system has absorbed most of the currency flows, rather than transferring them to the People's Bank of China for reserve accumulation. This trend suggests a shift in how China manages its foreign exchange dynamics amidst changing global trade patterns.

      © 2026 KLEA News. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

      Source: KLEA News

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