Foreign currency deposits stable after reform

The operation of foreign currency deposits in Shanghai has been stable since regulators lifted an interest rate cap on June 27, the People's Bank of China Shanghai Head Office said.

Rates offered by major Chinese lenders remained at an average of 0.05 percent for current accounts and 0.2 percent on three-month US dollar deposits on July 11, the same as before the June 27 liberalization.

Pricing did not fluctuate wildly, said the PBOC Shanghai Head Office, while the size of foreign currency deposits grew.

By July 10, combined deposits of US dollars, Japanese Yen, Euros and Hong Kong dollars reached $17.7 billion, about $0.9 billion more than that by the end of June.

PBOC Shanghai Head Office will continue to monitor and study foreign currency deposit data before the reform can be introduced across the nation.