China Loosens Another Financial Control

PBOC announces it will remove the cap on foreign-currency deposit rates in Shanghai for small institutional accounts.

China’s central bank expanded banks’ freedom to set foreign-currency deposit rates to all of Shanghai from the city’s free-trade zone, a step toward easing controls across the nation.

The People’s Bank of China (PBOC) will remove the cap on foreign-currency deposit rates in Shanghai effective tomorrow for what it described as small accounts, according to a statement distributed at a briefing in the city today. The trial will start with institutional accounts, and individual accounts will be added later based on “market conditions.”

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