Onshore yuan-denominated deposits experience largest drop since 2013By Chen Cheng-hui / Staff reporterOnshore yuan-denominated deposits last month dropped for the sixth consecutive month to 186.047 billion yuan (US$6.12 billion), a 4.69 percent decline from a month earlier and the lowest in nearly nine years, data released by the central bank on Wednesday showed. The monthly decrease of 9.158 billion yuan from 195.205 billion yuan in December last year also marked the largest decline since local banks began accepting yuan deposits in 2013, an indication that investors have lost interest in the Chinese currency. Onshore yuan deposits include those at local banks’ domestic banking units (DBUs) and those at offshore banking units (OBUs) in Taiwan. Photo: BloombergCentral bank data showed that yuan deposits at DBUs decreased 5.3 percent from the previous month to 157.693 billion yuan, while those in OBUs fell 1.14 percent to 28.354 billion yuan. The US Federal Reserve’s interest rate hikes have led to US dollar deposits gaining appeal over yuan deposits for institutional and individual investors given the widening interest spreads, the Liberty Times reported, citing the central bank.

Source: Taipei Times February 20, 2023 16:24 UTC