Apr 24, 07:13 AM

China Sees $206.3 Billion Net Capital Inflow, $40.9 Billion Outbound Investment, and Exchange Rate Flexibility in Q1 2025

China's foreign exchange market maintained generally stable operations in the first quarter of 2025 despite increased volatility in international financial markets, according to the State Administration of Foreign Exchange. The country's net inflow of cross-border capital from goods trade reached $206.3 billion, marking a 1.2-fold increase year on year. During this period, banks accumulated foreign exchange settlements of 37,965 billion yuan and sales of 42,100 billion yuan. Meanwhile, China's total outbound direct investment (ODI) rose 6.2% year on year to $40.9 billion in Q1 2025, as reported by the Ministry of Commerce. Non-financial outbound direct investment increased by 4.4% to $35.68 billion, with investments in countries participating in the Belt and Road Initiative reaching $8.87 billion, up 15.6% year on year. The Chinese foreign exchange regulator has committed to maintaining exchange rate flexibility amid these market conditions.

#China #Ministry of Commerce #Belt and Road Initiative #Chinese

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