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Several Chinese banks have recently boosted dollar deposit rates to levels not seen since at least 2023, according to sources. This move, in some cases surpassing US benchmarks, aims to attract cash and potentially slow the growing yuan rally, which has squeezed exporters' tight margins. The People's Bank of China, which typically provides informal guidance, did not respond to requests for clarification on the matter.

The currency rally has risen approximately 10% against the dollar since early 2025. Higher dollar deposit rates encourage savers and exporters to retain funds in dollars instead of low-yielding yuan. Over six Chinese banks, including state-owned, joint-stock, and foreign lenders, have implemented the rate increases in recent weeks.

The hikes follow months of incremental rate increases and signal an end to a de facto cap on state banks' dollar rates. The moves may also be aimed at countering year-end yuan buying and to offset rising US rates.