China Removes Cap on Forex Deposit Rates in Shanghai

China expanded banks’ freedom to set foreign-currency deposit rates in Shanghai, a step toward easing interest-rate controls across the nation.

The People’s Bank of China said today it will remove the ceiling on foreign-currency deposit rates across the city effective tomorrow for what it described as small accounts. The trial will start with institutional accounts and individual accounts will be added later based on “market conditions,” it said in a statement.