At the end of July, the decrease of the central banks foreign exchange account by 708 million yuan narrowed significantly.
The central banks foreign exchange account, which reflects cross-border capital flows, performed better than expected in July.
Although this is the twelfth consecutive month of annualized decline in foreign exchange, compared with the 6.192 billion yuan annualized decline in June, it narrowed significantly.
The changes in official foreign exchange reserves and the central banks foreign exchange share are often used as a reference for observing whether the central bank intervenes in the foreign exchange market.
Since the end of last year, the decline in the foreign exchange share of the central bank has begun to narrow sharply compared with the previous expectation of RMB devaluation.