Chinese companies are aggressively selling US dollars! The foreign exchange settlement surplus reached $51 billion in September, the largest since December 2020.

Chinese companies are selling dollars at the fastest pace in five years.

Data released by the State Administration of Foreign Exchange on October 22 show that banks recorded a $51 billion foreign exchange settlement surplus in September, the largest since December 2020. This reflects a significant increase in willingness to settle foreign exchange by market entities as expectations for RMB appreciation strengthen.

Li Bin, Deputy Director and Spokesperson of the State Administration of Foreign Exchange, stated that supply and demand in China’s foreign exchange market were relatively balanced in September, and both banks’ settlement and sales of foreign exchange on behalf of clients grew noticeably month-on-month. Net settlement was higher in the first and mid-month, while settlement and sale balanced toward the end of the month. Since October, the scale of banks’ foreign exchange settlements and sales on behalf of clients has been roughly equivalent, with basic balance in the foreign exchange market supply and demand.

Analysts point out that these data show rising market optimism towards the RMB. In September, the offshore RMB reached its strongest level since last November, and accelerated foreign exchange settlement by exporters may provide further support to the RMB.

Settlement Surplus Hits Near Five-Year High

Data released by the State Administration of Foreign Exchange show that in terms of USD, in September 2025, banks settled $264.7 billion and sold $213.6 billion, resulting in a settlement surplus of $51 billion. This is the largest single-month surplus since December 2020.

From January to September 2025, banks settled a total of $1.8533 trillion and sold $1.7901 trillion, with a cumulative surplus of $63.2 billion, higher than the same period last year.

The data also show that in terms of USD, in September 2025, banks’ international income on behalf of clients was $681.2 billion, and foreign payments were $684.3 billion. From January to September 2025, accumulated international income on behalf of clients was $5.8705 trillion and accumulated foreign payments were $5.7508 trillion.

Li Bin, Spokesperson for the State Administration of Foreign Exchange, said that China's foreign trade has grown steadily, and net capital inflows from merchandise trade remained high in September. Capital flows in services trade and investment income were relatively stable. Due to the seasonal impact of the “National Day” holiday on cross-border payments, September saw a small net cross-border outflow of $3.1 billion, but since October has shifted to net inflows.

Accelerated Exporter Settlement Supports the RMB

Khoon Goh, Head of Asia Research at Australia & New Zealand Banking Group, analyzed that the net settlement surplus indicates that funds flowing into China are increasing, which helps support the RMB, while exporters are also accelerating settlement.

With RMB appreciation expectations, exporters’ willingness to settle foreign exchange has clearly increased. Khoon stated:

As the central bank favors a stronger RMB and pushes up the midpoint, we may see the settlement ratio among exporters rise further for the remainder of this year, which will result in further RMB appreciation.

Risk Disclosure and DisclaimerThe market involves risk, and investments should be made with caution. This article does not constitute personal investment advice, nor does it take into account the specific investment objectives, financial situation, or needs of individual users. Users should consider whether any opinions, views, or conclusions herein fit their particular circumstances. Investment based on this article is at your own risk.