Interest rate adjustment small foreign currency deposit enters meager profit period

Xinhua Beijing, July 10, in recent days, the industry, agriculture, China, construction, exchange and other major banks have cut the interest rate of small foreign currencies, involving the United States dollar, sterling and other major currencies, each bank of the currency downward range is different, but small foreign currency deposit into the meager profit period is very obvious.　　Unlike the central bank's unified interest rate standard for renminbi deposits, the central bank has only capped the interest rates on small foreign currency deposits (below 3 million US dollars), allowing commercial banks to set their own interest rates on the basis of interest rate changes in the international financial markets. It is understood that this is also following the April this year, the major commercial banks to reduce the interest rate of small foreign currency after another group reduction. At this point, the five major commercial banks in some foreign exchange deposit has been approaching 0 interest rates.　　For example, the Bank of Communications Canada's current interest rate is only 0.01%.　　CCB Senior Researcher Zhao analysis that the major banks to significantly reduce foreign currency deposit interest rates, mainly because of the current economic stability in China, attract capital return, and the international market liquidity is exceptionally abundant, the lending market interest rate downward, commercial banks can only make corresponding adjustment in deposit interest rate. At present, the five major commercial banks small foreign currency deposit interest rate convergence, one-year deposits, ICBC, Agricultural Bank, CCB 3 banks of the United States dollar, Sterling, Hong Kong dollar, Euro, Canadian, Australian and Swiss franc deposit rates are the same, in addition to the Hong Kong dollar and the Swiss franc, other foreign currency interest rates slightly higher, Bank of China's dollar,　　HONG Kong dollar deposit rates are slightly lower, with AUD interest rates slightly higher. It is noteworthy, however, that not all banks ' foreign currency deposit rates have been adjusted with the five major commercial banks, so the interest rate differentials between different banks have widened.　　Taking one-year dollar deposits as an example, the interest rates for PU FA Bank, Minsheng Bank, Societe Generale and HSBC are all 1.25%, while ICBC and ABC are 0.8% and BOC is only 0.75%. However, compared with the fluctuation of exchange rate market, the influence of bank interest rate adjustment to investors is not big, Zhao said. For example, if there is a strong depreciation expectation for a currency, the loss of interest rates is low compared with the real value of the currency in the bank.　　Coupled with China's implementation of the Exchange system, the number of foreign currencies left in the hands of the people is not large, so the interest rate cut, foreign currency deposit business did not happen big changes.　　The industry suggested that a small amount of foreign currency deposits can be selected according to the currency of higher interest rates of banks, if the amount is large, but also should take into account the performance of the currency in the foreign exchange market, as far as possible to exchange into the currency of potential appreciation to preserve or carry out foreign exchange trading. At present, China's one-year deposit interest rate of RMB 2.25%.