China Sells $54.5 Billion Forex in July as Bond Holdings Rise

China's commercial banks sold a net $54.5 billion of foreign exchange in July, compared to $34.9 billion in June, according to the country's FX regulator. From January to July, the total net sales reached $168.2 billion. Meanwhile, foreign investors increased their holdings of onshore bonds by $20 billion in July, marking a 1.4-fold increase from the previous month, as reported by the State Administration of Foreign Exchange (SAFE). The People's Bank of China (PBOC) Shanghai Head Office reported that foreign holdings of yuan bonds on the interbank market stood at 4.46 trillion yuan at the end of July. Additionally, China injected a net 1.12 trillion yuan into the market this week through open market operations.