Shanghai citizens dump U.S. dollars

Chinanews, May 25 – Affected by the recent anticipated adjustments in the RMB, quite a few Shanghainese residents lean towards getting rid of the U.S. dollars they own. In April this year, many Shanghainese banks have experienced the pressure of rising volume of foreign currency transactions. Many banks reflected that near end of April and beginning of May, residents’ forex transactions amounts were up 30% or more over last year. Certain individual banks even reported single day currency transactions amounting to several hundred thousand U.S. dollars.

Because individual forex account holders flock to dumping the greenback, banks have experienced the ever more serious issue of losing their foreign currency deposits. The Shanghai branch of the People’s Bank of China reveals in its latest currency lending statistics that at the end of April, the entire city’s Chinese financial institutions have lost a total of US million in their various types of foreign currency balances, with savings deposit accounts losing US million.

Chinanews