HONG KONG, March 1 (Reuters) - Bank of China Hong Kong , the yuan clearing bank in Hong Kong, has offered to raise the overnight interest rate for yuan deposits for participant banks to 0.648 percent from March 1.
The bank will also extend its services by offering yuan time deposit rates with tenors of one-month, two-months and three-months, effective on the same day, with interest rates to be determined by the market, its spokeswoman said.
"Our purpose is to improve the service quality as a yuan clearing bank, and broaden the channel for yuan participant banks to allocate their renminbi," the spokeswoman told Reuters.
Before this arrangement, Bank of China Hong Kong offered an interest rate of 0.629 percent to yuan participant banks. (Reporting by Michelle Chen; Editing by Anne Marie Roantree)