BEIJING -- China's commercial banks saw a net forex settlement deficit of 42.3 billion yuan, or $6.1 billion, in July, the country's forex regulator said Monday.

The reading shrank from a deficit of 132.8 billion yuan reported in June, according to the State Administration of Foreign Exchange (SAFE).

Forex purchases by banks stood at 1.11 trillion yuan last month, while sales reached about 1.15 trillion yuan.

The data led to a forex settlement deficit of 267.1 billion yuan for the first seven months of the year, according to the SAFE.