Chinese lenders are increasing returns on dollar-denominated deposits, with some offers now exceeding 4%, as they compete for funds and seek to ease pressure on the yuan, Reuters reported, according to Business Recorder. More than six state-owned, joint-stock, and foreign banks have raised rates in recent weeks, reaching levels last seen in 2023.
At one state bank, dollar deposit rates reportedly climbed about 80 basis points over several months to reach 4.5% in late October, while another raised one-year rates above 4% for balances over $50,000. The moves come as Chinese banks have lowered yuan deposit rates, even as the yuan has gained about 10% against the dollar since early 2025. Foreign currency deposits in China totaled a record $1.2 trillion at the end of September, up 17.7% year on year.
