PBOC to Unify Policy on Foreign Currency Interest Rate Management

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Last updated at: (Beijing Time) Friday, March 08, 2002

PBOC to Unify Policy on Foreign Currency Interest Rate Management

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People's Bank of China (PBOC) issued a circular lately that it will unify its policy on domestic and foreign financial institutions' foreign currency deposit and loan rate management from March 1, 2002 on.

The circular said that small-sum foreign currency deposits held by residents in China will be managed according to PBOC's small-sum deposit rate: domestic and foreign financial institutions will carry out PBOC's current interest rates for less than US$3 million (or other currencies with same amount) for residents in China. Non-Chinese residents' small sums of deposit rate will be set by financial institutions.

The circular said that current policy on large sums of foreign loan rate will not be changed: deposit rate for US$3 million (or other currency) held by Chinese or non-Chinese citizens will be negotiated together by financial institutions and customers.

China Loosens Control on Foreign Currency Interest Rate

The People's Bank of China, the central bank, announced Tuesday that major reforms on the administrative system of interest rates of foreign currencies will be implemented from September 21.

A bank spokesman said that this move aims to promote a market-oriented interest rate reform so that China's banking industry will open wider to the outside world. Full Story

Increasing Role of Market in China's Foreign Exchange Rate

For the past two years, Dai Xianglong, China's central bank governor, has been asked, "Will the renminbi be devalued" nearly everywhere he went. Recently, a new question has replaced it - "Will China freely float the renminbi exchange rate?" Full Story

By PD Online Staff Li Yan

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