Taiwan’s Renminbi Deposits Fall to More Than 13-Year Low

Renminbi deposits at Taiwan’s domestic banks are an important gauge of companies’ and individuals’ willingness to hold the currency and their allocation of cross-border funds. The recent U.S.-Iran war has added uncertainty to financial markets, while U.S. dollar interest rates remain attractive. Renminbi positions continue to be converted or redeployed, showing a clear preference for higher-yielding, more liquid dollar assets.

Taiwan’s central bank said renminbi deposits at domestic banks fell to 104.681 billion yuan at the end of May 2026, the lowest level in more than 13 years. The central bank said deposits held by both corporate and individual customers declined, mainly because funds moved into higher-interest-rate currencies such as the U.S. dollar and companies flexibly adjusted positions to meet operating needs. The shift reflects a simultaneous rise in demand for hedges and interest-rate differentials.