Exclusive: Chinese banks heed PBOC call to cut dollar deposit rates, say sources
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 28 2025
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Source: Reuters
Interest Rate Cuts on Dollar Deposits: China's banks are reducing interest rates on U.S. dollar deposits as directed by the People's Bank of China (PBOC) to discourage dollar hoarding and support a weakening yuan, with some banks already announcing rate cuts.
Impact of Currency Trends: The gap between higher U.S. interest rates and lower Chinese yields has led to increased dollar deposits, reaching nearly a trillion dollars, while the yuan's appeal diminishes due to economic concerns and external pressures like tariff threats.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
