Chinese renminbi-denominated deposits held by banks operating in Taiwan hit a new high as of the end of April, according to the central bank’s statistics.
Market analysts said that the increase in the balance of Taiwanese banks’ renminbi deposits largely resulted from a move by many banks here to offer higher renminbi deposit rates. This led investors to park their money into their renminbi savings accounts.
The central bank’s statistics show that the balance of renminbi deposits in Taiwanese banks totaled 330.13 billion Chinese yuan (US$53.25 billion) as of the end of April. That’s up 1.7% from a month earlier.
The central bank lifted a ban in 2013 to allow local banks to conduct renminbi-denominated business, including deposits.