BEIJING — China’s commercial banks reported a drop in their forex settlement deficit in December, official data showed.

Forex purchases by banks stood at 1.14 trillion yuan ($167.7 billion) last month, while sales reached 1.19 trillion yuan, resulting in a deficit of 48.8 billion yuan, according to data from the State Administration of Foreign Exchange (SAFE).

This narrowed from a November deficit of 124.1 billion yuan, according to SAFE data.

The Chinese banks’ forex settlement deficit hit $56 billion in 2018, shrinking 50 percent from 2017.

“The figures show that cross-border capital flows remain generally stable, while forex market supply and demand are basically balanced,” said SAFE spokesperson Wang Chunying.

She said the country’s forex market had remained stable despite a complex environment last year and would maintain the trend in 2019.