China to free deposit rates within two years

BEIJING – The governor of China's Central Bank Zhou Xiaochuan has said that deposit rates in the country will be liberalized within two years in the final step that would allow China's banks to set their own interest rates.

Zhou Xiaochuan, speaking at a press briefing at the annual meeting of the National People’s Congress, said he expected deposit rates to rise as a result of relaxing of government restrictions.

Zhou also mentioned China's intent to establish the “yuan” as one of global currencies. He said that there was still much to do and they planned to implement new reforms to ease the flow of “yuan” abroad.

Last July China ended the fixed base deposit rate practice allowing financial establishments to determine them as part of the country's attempts to help provide more sustainable long-term growth.

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