Yuan holdings at Taiwanese banks fall 1.04 percentUNPOPULAR: The decline was mostly due to falling interest rates, as people constantly moved capital in search of better returns, the central bank saidBy Crystal Hsu / Staff reporterChinese yuan deposits held by Taiwanese banks last month fell 1.04 percent to 239.11 billion yuan (US$37.1 billion), as local investors lost some interest in the currency and favored other financial assets to pursue better yields, the central bank said yesterday. “The retreat in yuan deposits had much to do with a drop in interest rates for yuan deposits,” the central bank said, as investors continually moved capital around to pursue better yields. Yuan deposits held by domestic banking units weakened by 1.14 percent to 207.58 billion yuan, compared with 209.97 billion yuan in March, the bank said. Meanwhile, yuan deposits at offshore banking units shrank 0.43 percent from 31.67 billion yuan to 31.53 billion yuan, it added. Globally, Taiwan’s yuan deposits ranked the second-largest, next only to Hong Kong’s 772.5 billion, and ahead of Singapore’s 152 billion yuan and South Korea’s 11.6 billion yuan, the bank said.

Source: Taipei Times May 17, 2021 15:56 UTC