Chinese Banks Reportedly Raise Dollar Deposit Rates as Yuan Gains

Chinese banks have raised U.S. dollar deposit rates as the yuan strengthens, making it more attractive for exporters and other depositors to hold dollars rather than convert them into yuan. Reuters reporting cited rates as high as about 4.5% in late October, compared with roughly 0.95% for yuan deposits at major state lenders; more than six state-owned, joint-stock and foreign banks were said to have increased dollar yields. The yuan has gained about 10% against the dollar since early 2025, and the higher rates appear aimed at easing appreciation pressure and retaining foreign currency in China’s banking system. One report also describes a central-bank increase in banks’ foreign-currency reserve requirements as a complementary measure. The rate figures and banks’ motivations rely largely on anonymous sources, and the central bank did not confirm that policymakers directed lenders to raise rates.