People's Bank of China, Circular on Implementation of the Normal Deposit Reserve Rate for Deposits with Domestic Correspondent Banks by Banks Participating in Offshore Renminbi Business

Issued: January 16 2016 Effective: January 25 2016

Main contents: The renminbi deposits deposited with domestic correspondent banks by banks participating in offshore renminbi business will be subject to the normal deposit reserve rate, namely the current statutory deposit reserve rate for domestic correspondent banks. The renminbi deposits of the clearing banks for renminbi business in Hong Kong and Macao (more specifically Bank of China (HK) and Bank of China, Macao Branch) deposited in clearing accounts with the Shenzhen and Zhuhai city center sub-branches of the People's Bank of China and the renminbi deposits deposited by other renminbi business clearing banks in clearing accounts with their domestic parent banks will be handled with reference to the Circular. Offshore banks do not include foreign central banks (monetary authorities), other official reserve management institutions, international financial organizations, sovereign wealth funds and other such central bank type institutions.