China's foreign exchange market hits strong activity in May
Date
6/30/2024 8:33:00 AM
(MENAFN) Official data released by the State Administration of Foreign Exchange reveals that China's foreign exchange market was vibrant in May, with transactions totaling 23.89 trillion yuan (approximately 3.36 trillion US dollars). This data underscores the significant role of China in global currency markets.
The breakdown of transactions indicates that the client market saw transactions amounting to 3.16 trillion yuan, while the interbank market recorded transactions amounting to 20.72 trillion yuan during the same period. This distinction highlights the diverse participants and mechanisms driving liquidity and activity within China's forex market.
In terms of market segments, the spot market accounted for a total transaction volume of 7.81 trillion yuan, reflecting immediate exchange of currencies at current market rates. Meanwhile, the derivatives market recorded transactions totaling 16.08 trillion yuan, showcasing the use of financial instruments to manage currency risk and speculation.
Looking at the cumulative figures for the first five months of 2024, the total transaction volume in China's foreign exchange market reached 113.09 trillion yuan. This robust activity underscores China's role as a pivotal player in global finance, with its forex market serving as a crucial hub for currency trading, hedging, and investment strategies.
The data highlights the resilience and depth of China's financial markets amid global economic dynamics, emphasizing the country's continued integration and influence in the international financial system.
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