HONG KONG, March 1 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)