China's forex regulator said the country could cope with potential external shock and ensure stability in its forex market.

Although external uncertainties abound, the economy will remain running within a reasonable range as the country's industrial restructuring and upgrade as well as opening-up continued apace, the State Administration of Foreign Exchange (SAFE) said on its website.

As two-way movements in the yuan exchange rate have become increasingly flexible and the macro-prudential regulation on cross-border capital flows continues counter-cyclical adjustment, China can cope with external shock and ensure stability in the forex market, it said.

SAFE said supply and demand at the forex market have remained generally stable. Further opening-up of the financial market has led to more international capital inflows, and foreign currency purchase by enterprises and individuals has become more rational.

Commercial banks saw a net forex settlement deficit of 10.5 billion U.S. dollars in the first eight months of the year, narrowing 91 percent from one year earlier.

The country's foreign exchange reserve stood at 3.1097 trillion dollars at the end of August, 8.2 billion dollars less than a month ago.

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