Michael Pettis: Chinese banks boost U.S. dollar deposit rates to 4 percent - Traders Union
Michael Pettis: Chinese banks boost U.S. dollar deposit rates to 4 percent - Traders Union
Source: Traders Union
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DW NOTE
Chinese banks offering 4% on dollar deposits is capital flight dressed up as a savings product. When your own currency is under enough pressure that you need to bribe depositors to stay in dollars *within your banking system*, you're not managing exchange rate risk — you're trying to prevent a run by making the cage more comfortable.