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Taiwan’s RMB deposit hits high of 300 billion

Taiwan’s RMB deposit hits high of 300 billion

As the depreciation of the RMB wound down, nationals regained confidence in the RMB. The Central Bank of the Republic of China (Taiwan) indicated that total RMB deposits have reached a new record high of RMB 295.24 billion for a monthly increase of RMB 2.21 billion, or 0.76 percent, on the previous month.

RMB depreciation reached the fiercest level this year in March and April and rebounded in May and June. RMB rose to 6.1747 against the USD in late July and further to 6.1432 in August with a monthly appreciation rate of 0.51 percent.

CBC’s Foreign Exchange Deputy Director-General Harry Yen indicated that with the halt of the RMB’s decline, RMB deposit growth has exceeded 2.2 billion with rapid expansion.

As of August 31, 2014, there were 67 authorized banks(DBUs)and 59 offshore banking units(OBUs)conducting RMB business. DBUs embraced a RMB deposit balance of 243.36 billion, climbing 2.37 billion, or 1 percent, from July 31. OBUs, however, saw a slight monthly decline of 157 million to 51.88 billion. The combined deposit balance in August reached a new high of 295.24 billion.

Since domestic RMB deposits hit the threshold of 290 billion, a net increase of RMB 5.2 billion was only seen over the past three month and failed to surpass 300 billion. CBC officials noted that RMB deposits have entered a phase of stable growth and rapid growth or decline will be unlikely to take place in the near future. Official also attributed the slow growth of RMB deposits to a change in asset relocation. Some insurance companies have switched RMB deposit into the holding of RMB-denominated Formosa bonds.

In Hong Kong, RMB deposit balance reached 936.8 billion on July 31, increasing 10.9 billion from the previous month. Data showed that RMB deposit would rebound with RMB appreciation.