China's foreign exchange market remained stable in November, with foreign-related economic activity continuously active, according to the State Administration of Foreign Exchange (SAFE) on Monday.
China's commercial banks saw a forex settlement surplus of 3.5 billion U.S. dollars in November. Forex purchases by banks reached 204.4 billion U.S. dollars, while sales stood at 200.9 billion U.S. dollars, SAFE data showed.
In November, China's banks processed 593.2 billion U.S. dollars in foreign-related income and 612.7 billion U.S. dollars in overseas payments, according to the administration.
Additionally, in November, foreign-related transactions by non-bank sectors, such as businesses and individuals, totaled over 1.2 trillion U.S. dollars, up 7.5 percent year on year and 1.7 percent month on month. There was also a surplus of 19.2 billion U.S. dollars in cross-border foreign currency flows, the SAFE said.
Since August, net capital inflows from goods trade remained at a high level. In terms of foreign direct investment, China has seen net inflows rise for three consecutive months, helping to support the stability of its forex market, according to the administration.
China's forex market stable in November
Amid widespread opposition, U.S. President Donald Trump on Wednesday signed two executive orders on the so-called "reciprocal tariffs," imposing a 10-percent "minimum baseline tariff" and higher rates on certain trading partners.
Trump announced these tariffs in a speech in the White House Rose Garden, during which he also said a 25-percent tariff on cars and car parts imported into the U.S. will take effect on Thursday.
Many trading partners of the U.S. have previously expressed their opposition, saying that they will take countermeasures in response.
On Wednesday, President of the European Council Antonio Costa said the European Union must react in a "firm but smart manner" to the reciprocal tariffs.
"This is truly a major economic mistake for the United States and also for Europe and the entire world," Costa said.
Italian Prime Minister Giorgia Meloni said the introduction of new U.S. tariffs would have heavy repercussions for Italian producers, adding that she did not rule out "adequate responses" to defend Italian products.
While stating that the UK is engaging in constructive talks to reach a broader economic prosperity deal with the U.S., British Prime Minister Keir Starmer also said that the country is prepared for all possible scenarios and will not rule out any possibilities
Trump imposes "reciprocal tariffs" amid widespread opposition
