Declining deposit rates weaken US dollar's appeal to Chinese investors

The decline in U.S. dollar deposit rates has reduced their appeal to Chinese investors, prompting many to diversify their investments for better risk management.

According to statistics, the one-year U.S. dollar fixed deposit rates at many banks currently hover around 3 percent, marking a notable decline from the approximately 4 percent seen at the beginning of last year.

"Recently, fewer customers have been coming to our branch to ask about U.S. dollar fixed deposits. Our personal foreign currency deposit rates vary depending on the term and deposit amount, and are adjusted in line with market fluctuations and interbank pricing. Following the recent rate adjustments, many customers are seeking to diversify their investments to better manage risk," said Meng Xiangshuang, deputy manager of the retail department at the Hujialou branch of the Bank of Nanjing.

Some investors indicated that they will adjust their dollar holdings based on actual needs.

"I used to hold U.S. dollar fixed deposits when yields were relatively high, but rates have fallen. Combined with exchange rate volatility, the returns now feel uncertain. Going forward, I plan to diversify the investments based on my actual needs," said Liu, a Beijing resident.

Industry analysts point out that investing in U.S. dollar fixed deposits currently involves dual uncertainties -- interest rate and exchange rate. Investors are advised to manage their funds according to liquidity needs and risk tolerance, adopting tailored strategies accordingly.

"Beyond interest rates, exchange rates are also constantly changing. If the RMB appreciates during the deposit period, the foreign exchange losses at maturity could offset the interest earnings of deposits. Additionally, both buying and converting foreign currency involve costs. So, investors are recommended to align their decisions with actual U.S. dollar needs," said Li Ankang, customer manager at the Beijing Guanghua Branch of the China Construction Bank.

Declining deposit rates weaken US dollar's appeal to Chinese investors

China Media Group's 2026 Spring Festival Gala promo recently lit up a giant screen in downtown Skopje, marking the gala's first-ever appearance in North Macedonia and drawing crowds of curious locals and overseas Chinese.

The Spring Festival, or the Chinese New Year, is the most important traditional holiday for Chinese people, and the gala's live broadcast on the eve of the festival has become a cherished part of the celebrations in hundreds of millions of homes.

On February 6, the promo captivated audiences in Skopje's city center, where its vibrant colors and festive music captured the spirit of the holiday and drew passersby to stop and watch.

"The promotion and the gala seems like a really interesting event, which I would love to attend one day, hopefully in the future, which I believe showcases the most beautiful parts of Chinese culture," said a local student named Blindit Aranishi.

At the Chinese Embassy's Spring Festival reception in North Macedonia that same day, guests were treated to a screening of the gala's promotional video along with highlights from the "Travel China Through Film" series.

"The promotion and the gala seems like a really interesting event, which I would love to attend one day, hopefully in the future, which I believe showcases the most beautiful parts of Chinese culture," said Jiang Xiaoyan, Chinese ambassador to North Macedonia.

"It's really breathtaking. The talents that we see from Chinese actors and singers and painters are remarkable. So of course, it will bring lots of joy to people watching the gala and also I am very happy that this joy was shared with the people of North Macedonia," said Rita Columbia, United Nations Resident Coordinator in North Macedonia.

The Spring Festival falls on Feb 17 this year, marking the start of the Chinese New Year. This year ushers in the Year of the Horse, the seventh animal in the 12-year Chinese zodiac cycle.

2026 Spring Festival Gala promo debuts in North Macedonia