From Startup Fortune · · 1m
Chinese banks boost dollar rates to curb yuan rally
Chinese banks raised dollar deposit rates to 4.5% to slow yuan's four-year high surge.
In brief
Chinese banks raised dollar deposit rates to 4.5% to slow yuan's four-year high surge. Chinese banks increased dollar deposit rates to 4.5% to counter yuan's rally to a four-year high of 6.6449 per dollar. Originally reported by Startup Fortune.
Beijing targets exporters
Beijing wants exporters to hold dollars instead of selling them for yuan.
Dollar deposit rates rise
Dollar deposit rates at Chinese banks reached 4.5% in late October, the highest since 2023.
Yuan rates lag behind
Yuan deposit rates at major state lenders are 0.95%, far below dollar rates.
Six banks adjust rates
More than six banks, including state-owned and foreign lenders, raised dollar deposit rates.
Yuan at four-year high
The yuan has reached a four-year high of 6.6449 per dollar.
Anonymous sources
All bank details come from anonymous sources not authorized to speak to media.
PBOC reserve requirement
The People's Bank of China will raise foreign exchange reserve requirement from 4% to 6% on November 15.
The essence
Chinese banks increased dollar deposit rates to 4.5% to counter yuan's rally to a four-year high of 6.6449 per dollar.
