By Chen Cheng-hui / Staff Reporter
Domestic renminbi-denominated deposits fell to 120.071 billion yuan (US$16.88 billion) last month, a 1.29% month-on-month decline and the lowest level in about 11 years, according to data released by the People’s Bank of China yesterday. It became.
According to the data, the decline in the previous month was 1.568 billion yuan from 121.639 billion yuan in August, marking the fourth consecutive month of decline.
The central bank said investors and businesses continued to convert renminbi deposits into US dollars amid growing concerns about the world’s second-largest economic slowdown.
Photo: CNA
He pointed out that interest rates are the key to halting the decline in renminbi deposits.
The US Federal Reserve has begun cutting interest rates, but given the resilience of the US economy, it is unlikely that the Fed will cut rates aggressively in the short term, providing support for the US dollar. He expressed his view.
The central bank said other factors, including ongoing geopolitical tensions and next month’s U.S. presidential election, have also made investors more risk-conscious and encouraged them to move money into dollar-denominated assets, pushing the dollar higher.
Onshore RMB deposits include RMB deposits held in domestic banking units (DBUs) of local banks in Taiwan and RMB deposits held in offshore banking units (OBUs).
According to central bank data, renminbi deposits last month fell to the lowest level since October 2013, with DBU deposits down 0.41% from the previous month to 91.563 billion yuan, and OBU deposits down 4% to 28.58 billion yuan. It became 10,000 yuan.
The People’s Bank of China analyzed that the large decline in OBU deposits was due to companies in the electronics industry converting their RMB-denominated deposits into US dollars for cash management purposes.
Based on information provided by the central bank, Bank SinoPac offers Taiwan’s highest interest rate of 3.05% on one-month RMB deposits, while Sunny Bank offers We offer the highest interest rates on 3-month RMB deposits. Six-month and one-year RMB deposits are 1.5%, 1.55%, and 1.65%, respectively.
