China · Crypto Briefing
Chinese banks raise dollar deposit rates to counter yuan strength
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◌ Single Source
At least five Chinese banks have boosted USD deposit rates to discourage companies from converting dollars into yuan, marking a sharp reversal from policies months earlier.
Key facts
- The reversal from 2023’s 2.8% cap to rates now matching or exceeding 3.61% in the span of roughly three years illustrates how reactive Chinese monetary policy
- The yuan has gained over 3% against the dollar so far in 2026, and Chinese authorities are clearly not thrilled about the pace
- Back in 2023, dollar deposit rates were capped at 2.8% for stretches of time
- Corporate dollar deposit rates at these banks have climbed to approximately match or exceed the US Secured Overnight Financing Rate, which currently sits at 3.61%
Summary
The yuan has gained over 3% against the dollar so far in 2026, and Chinese authorities are clearly not thrilled about the pace. Corporate dollar deposit rates at these banks have climbed to approximately match or exceed the US Secured Overnight Financing Rate, which currently sits at 3.61%. Back in 2023, dollar deposit rates were capped at 2.8% for stretches of time. In early 2025, the PBOC mandated additional rate cuts affecting dollar deposits, doubling down on the same approach.