Yuan deposits held by local banks last month rose 0.26 percent to 236.03 billion yuan (US$37.08 billion), ending three straight months of decline, although local retail investors continued to trim positions, the central bank said yesterday.
The slight change prompted the bank to start treating yuan stakes as common foreign-currency deposits under its management, and it said the monthly news briefings on yuan deposit data would end next year.
Yuan deposits at domestic banking units shed 0.19 percent to 202.83 billion yuan, but grew 3.11 percent to 33.19 billion at Taiwanese offshore units, the central bank said.
Photo: Kelson Wang, Taipei Times
The movements came as corporate and retail accounts cut yuan holdings in favor of other investment tools, due mainly to return expectations rather than concern over foreign-exchange rates, it said.
This is why yuan-denominated time deposits fell, while demand deposits rose slightly, it said.
However, local electronics firms converted some US dollar holdings into yuan deposits to strengthen operations of their subsidiaries in China, accounting for the rise in yuan deposits at offshore units, the central bank said.
Last month, Bank SinoPac (永豐銀行) offered Taiwan’s 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 of 2.1 percent for three-month yuan deposits, the central bank said.
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