August increase suggests resumed capital inflows.
The People's Bank of China, China's central bank, and financial institutions bought a net US$4.48 billion of foreign currency in August compared with net sales of US$3.98 billion in July, said The Wall Street Journal.
It is the sixth straight month of net purchases between December and May. The banking system's foreign currency purchase position was US$4.48 trillion in August as against US$4.45 trillion in July, PBOC said.
The data include purchases and sales by commercial banks and other financial institutions, but mostly reflect transactions by PBOC.
The figures are normally seen as a proxy for inflows and outflows of foreign capital since most foreign currency entering China is generally sold to PBOC.
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