BOC Hong Kong Raises Yuan Rates, Starts Fixed Deposits for BanksFion Li
BOC Hong Kong Holdings Ltd., the city’s sole yuan clearing bank, raised the interest rate on other lenders’ accounts in the Chinese currency.
The overnight rate was increased to 0.648 percent from 0.629 percent from today, Aries Law, a spokeswoman at BOC Hong Kong said by telephone. The lender has also started offering yuan fixed deposits maturing in one to three months to financial institutions that do business in the Chinese currency, she said.
“These will improve the services of the clearing bank,” said Law. “That’ll also open more channels for participating banks to allocate their yuan assets as well as raising Hong Kong’s status as an offshore yuan trading hub.”
The rate on one-month fixed deposits for banks was set at 2.2 percent today, according to BOC Hong Kong data. That on two-and three-month savings were 2.3 percent and 2.4 percent, respectively.
The clearing bank cut the rate on yuan savings to 0.629 percent from 0.865 percent in April 2011. Yuan deposits in the city climbed 21 billion yuan ($3.4 billion) in January from the previous month to 624 billion yuan, within 0.5 percent of the record 627.3 billion in November 2011, according to the Hong Kong Monetary Authority data yesterday.