# Exclusive: Chinese banks heed PBOC call to cut dollar deposit rates, say sources

> Chinese banks are cutting interest rates on US dollar deposits after being asked to do so by the central bank. Sources say the aim is to curb dollar hoarding and support a weakening yuan. The report is based on sources and is not an official announcement.

- Date: 2025-02-28 · published 2025-02-28T12:00:00.000Z
- Category: macro · region China · magnitude low
- Page: https://feedsoft.ai/events/26293-exclusive-chinese-banks-heed-pboc-call-to-cut-dollar-deposit-rates-say-sources
- Commodities: [Chinese Yuan (CNY per USD)](https://feedsoft.ai/c/USDCNY.md)

## Why it matters

Currency-defense measures like this signal Beijing's effort to stabilize the yuan, which supports Chinese import demand for dollar-priced commodities. The direct effect on feed prices is small.

## Read by commodity

- USDCNY: bearish ▼

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| USDCNY | 2023-07-20 | [Exclusive: China's state banks selling dollars offshore to slow yuan declines, sources say](https://feedsoft.ai/events/35258-exclusive-china-s-state-banks-selling-dollars-offshore-to-slow-yuan-declines.md) | -1.0% | +1.0% |
| USDCNY | 2024-01-05 | [Exclusive: China's state banks act to stem yuan slide onshore and offshore -sources](https://feedsoft.ai/events/32357-exclusive-china-s-state-banks-act-to-stem-yuan-slide-onshore-and-offshore.md) | +0.1% | +0.5% |
| USDCNY | 2023-07-25 | [China state banks seen selling US dollars to prop up yuan -sources](https://feedsoft.ai/events/35257-china-state-banks-seen-selling-us-dollars-to-prop-up-yuan-sources.md) | -0.6% | +1.4% |
| USDCNY | 2024-08-30 | [China state banks buying dollars amid rapid yuan gains, sources say \| Reuters](https://feedsoft.ai/events/29021-china-state-banks-buying-dollars-amid-rapid-yuan-gains-sources-say-reuters.md) | -0.1% | -1.2% |
| USDCNY | 2023-12-06 | [China state banks selling dollars for second day to support yuan - sources](https://feedsoft.ai/events/32921-china-state-banks-selling-dollars-for-second-day-to-support-yuan-sources.md) | +0.4% | +0.2% |

## Sources

- reuters.com: https://www.reuters.com/markets/asia/chinese-banks-heed-pboc-call-cut-dollar-deposit-rates-say-sources-2025-02-28/

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.