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  • 2 Post By mrgoodkat

CNY deposit

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  1. #1

    Join Date
    Sep 2012
    Location
    香港
    Posts
    1,162

    CNY deposit

    Hi everyone,

    My bank offers noticeably higher interest rates for deposits in yuan. Any additional risks other than the obvious currency drift HKD/CNY? I understand that there are lots of restrictions for dealing CNY. I don't need yuan at present, no dealing with China whatsoever...


  2. #2

    Join Date
    Jan 2010
    Posts
    6,452

    The bank is only offering a higher interest rate because they want you to buy their RMB holdings. With the way the RMB is predicted to fall I wouldn't touch it with a barge pole.

    shri and jrkob like this.

  3. #3

    Join Date
    Feb 2011
    Location
    Hong Kong
    Posts
    6,317

    I disagree. I like RMB as part of the portfolio (not too much!!) and government have come out saying they will keep it stable. Always 3-4% rates. Change notes at a money changer to get better rates.

    The risk is the currency risk. That's all.

    Any limits on currency can be avoided at a money changer on the street.


  4. #4

    Join Date
    Dec 2002
    Location
    薄扶林
    Posts
    47,971

    money changer - risk mitigation using the worst possible exchange rates?