Shanghai Residents' Foreign Currency Deposits Hit US$ 9.17 Billion

Statistics provided by Shanghai Branch of the People's Bank of China show that by the end of May this year, the balance of Shanghai residents' foreign currency deposits (after conversion) had reached US$ 9.17 billion, accounting for 14.82 percent of the national total surplus in the same period.

Shanghai has gained a good momentum of growth in foreign currency deposits since the beginning of this year, registering an increase of US$ 780 million in the first five months. The foreign currency deposits balance of Chinese financial institutions was US$ 14.32 billion at the end of May. Fixed deposits account for 93.7percent, which demonstrated the strong stability of the source of deposit and the long-term use value.

Sources say that the relatively high interest rate this year is the main factor for the increase in foreign currency deposits. After the People's Bank of China announced its decision to raise the interest rate of major foreign currency deposits on May 29, the foreign currency deposits of Shanghai grew at a faster speed. It is estimated that the upward trend will continue for a period of time.

People's Daily Online --- http://www.peopledaily.com.cn/english/