More than six Chinese banks, including state-owned and foreign lenders, have raised the interest rates they offer on US dollar deposits in recent weeks, according to banking sources interviewed by Reuters. Some one-year offers now exceed 4 percent. One public bank was offering 4.5 percent on dollar deposits at the end of October.
Rates rise as deposits grow
Reuters could not establish whether Chinese authorities asked the banks to raise their rates. Two banking sources said they already see new deposits from exporters and individuals. Foreign-currency deposits at Chinese banks reached a record 1,200 billion US dollars at the end of September, according to central bank data cited in the press, up 17.7 percent year on year.
Large state-owned banks pay around 0.95 percent on yuan deposits after several cuts. Reuters estimates the yuan has appreciated about 10 percent against the US dollar since the start of 2025.
Reserve requirement change
The People’s Bank of China has said the reserve requirement ratio on foreign-currency deposits will rise from 4 percent to 6 percent on 15 November. Higher dollar deposit rates may encourage exporters to keep export proceeds in foreign currency. That could ease upward pressure on the yuan.
Related: Indonesia names 16 banks for export proceeds deposits
Source: People's Bank of China
