Chinese yuan deposits held by local banks last month declined 0.91 percent to 225.32 billion yuan (US$34.66 billion), shrinking for a fourth consecutive month, as corporate and retail clients adjusted asset portfolios amid inflation expectations and geopolitical tensions, the central bank said on Tuesday.
The decrease was related to personal and corporate decisions regarding asset allocation strategies, and was not connected to political circumstances, the bank said.
Major Asian currencies have been hit hard this year, partly by US Federal Reserve rate hike expectations and the Japanese yen weakening 10.11 percent against the US dollar, it said.
Photo: Kelson Wang, Taipei Times
The New Taiwan dollar fared better with a 5.27 percent correction, while the Chinese yuan held firm with a 0.04 percent dip, making it the best performer in the region, it said.
Yuan deposits at domestic banking units dropped 1.49 percent to 196.76 billion yuan after retail and corporate clients trimmed positions, the central bank said, adding that a major electronics firm had used yuan deposits for goods payments.
Yuan deposits at offshore banking units rose 3.24 percent to 28.56 billion yuan after some firms converted US dollar deposits into yuan holdings to meet yuan settlement needs, the bank said.
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