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Stock impact report

Exclusive-Chinese banks heed PBOC call to cut dollar deposit rates, say sources [Yahoo! Finance Canada]

BANK OF EAST ASIA S/ADR (BKEAY) 
asked to do so by the central bank, possibly to curtail dollar hoarding and also prop up a weakening yuan, sources said. Mainland retail investors and exporters have built up nearly a trillion dollars worth of deposits because of higher U.S. yields and the yuan's slide. Two banking sources with direct knowledge of the matter said banks across China, big and small, have over the past few weeks been told by the People's Bank of China (PBOC) they have to cut dollar deposit rates. This guidance seems aimed at discouraging a further rise in dollar deposits and spurring more conversion of those dollars into yuan, the sources said. "We've got the guidance from the superior that we need to lower the dollar deposit rates, and many of our peers have already done so," said one of the banking sources, adding the regulators seem worried about the proportion of cash being held onshore in dollars. The PBOC did not respond immediately to a Reuters request for comment. Some banks have anno Show less Read more
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