China's State Banks Urged to Lower Deposit Rates to Boost Growth

China's self-regulatory body has instructed major state-owned banks to lower dollar deposit interest rates in an attempt to boost the country's weakening yuan. Interest rates offered by Chinese banks on dollar deposits of $50,000 and above will now be capped at 4.3%, with the new rates set to be lowered by as much as 100 basis points from the previous ceiling of 5.3%. The move is expected to encourage Chinese firms, particularly exporters, to settle foreign exchange receipts in yuan.