Chinese banks boost dollar deposit rates

Chinese lenders are raising returns on dollar deposits, with some offers exceeding 4%, as they compete for funds and seek to limit pressure on the yuan, Business Recorder reported, citing Reuters. More than six state-owned, joint-stock and foreign banks have increased 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, reaching 4.5% in late October; another raised one-year rates above 4% for balances over $50,000. The moves come as Chinese banks have lowered yuan deposit rates, while the yuan has gained about 10% against the dollar since early 2025. Foreign currency deposits in China stood at a record $1.2 trillion at end-September, up 17.7% year on year.