The report comes via Reuters, stating that China's major state-owned banks have lowered their dollar deposit rates once again with effect from 1 July. The rates were cut by as much as 150 bps with the sources claiming that some banks were not offering rates above the 2.80% cap (reduced from 4.30% previously) for large deposits.
In case you missed it, this was the news from last month. It is all part of an incentive to bolster the yuan via encouraging individuals to not hold dollar deposits in China. At the same time, it is meant to encourage Chinese firms, particularly exporters, to settle their FX receipts in the yuan.
