China Bank offers yuan accounts to depositors
SY-LED CHINA Banking Corp. now allows depositors to set up yuan savings accounts in anticipation of the currency’s rise in the international community, supported by China’s rapidly expanding economy.
In a statement on Friday, China Bank said yuan savings accounts would be available in select branches in Metro Manila initially, with the rest of the company’s branch network to follow later.
“With the rise of China as one of the world’s biggest economies and leading trading partner for most countries, including the Philippines, the China yuan is poised to become an important currency not just for businesses’ transactions with China but also for individuals’ investment needs,” the bank said.
“China is expected to further liberalize policies relating to the yuan that include possibilities for yuan-denominated investment instruments,” China Bank said.
The minimum initial deposit and maintaining balance for China Bank Yuan Savings Account is CNY2,500 (P16,735). Accounts are interest-earning and come with passbooks.
The account is accessible over-the-counter at the selected servicing branches or via the Internet, 24/7, through China Bank Online, China Bank’s multiawarded internet banking portal.
Customers can convert their yuan in this account to dollar or peso, subject to foreign currency rules of the Bangko Sentral ng Pilipinas.
Aside from yuan, China Bank offers savings deposit accounts in US dollars and euros.
Aside from China Bank, other local lenders that have allowed yuan-denominated deposits are the Bank of the Philippine Islands and Metropolitan Bank and Trust Co.
Local banks began offering yuan accounts following 2009’s US-led global financial crisis, which resulted in volatile swings in the greenback—the main currency used for the settlement of international transactions.
The Chinese government is the biggest holder of US government debt paper.
The yuan, also called the renminbi, has been pegged by the Chinese government at about 6.83 per dollar since July 2008.
Keeping the yuan weak has made China’s exports cheaper, giving the country a robust trade surplus that has propped up its economy. China has said it would allow the revaluation of its currency. Paolo G. Montecillo
