Yuan deposits held by local banks last month declined by a fractional 0.14 percent to 237.51 billion yuan (US$36.94 billion), the lowest since December last year, as corporate and retail accounts cut holdings, the central bank said yesterday.
The drop of 332 million yuan marked the second straight month of declines, even though the yuan increased in value against the US dollar over the period, the central bank said.
Yuan deposits held at domestic banking units fell 0.3 percent to 207.33 billion yuan, but edged up 0.97 percent to 30.17 billion yuan at offshore banking units, it said.
Photo: Lu Kuan-cheng, Taipei Times
Demand deposits declined, while time deposits increased, the central bank said.
Corporate accounts adjusted more noticeably than retail accounts, because some companies settled account payables with their yuan deposits, it added.
The increase at offshore banking units came after some companies took back outstanding loans, the central bank said.
Retail investors have shed yuan positions for several months, resisting the yuan’s appreciation, it said.
Taiwanese used to love yuan deposits as an investment tool, attracted by their relatively high interest rates and value gains, but in the past few years yuan interest rates have dropped and stock investments generated better returns, it said.
Last month, Bank SinoPac (永豐銀行) offered the highest interest rate of 3.05 percent for one-month yuan deposits, while Chang Hwa Commercial Bank (彰化銀行) provided the highest interest rate for three-month yuan deposits at 2 percent, the central bank said.
Land Bank of Taiwan (土地銀行) offered the highest interest rates for six-month and one-year yuan deposits at 2.3 percent and 2.4 percent respectively, it said.
A growing number of investment options also helped dampen the yuan’s popularity, it added.
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