Japan’s Sumitomo Mitsui Banking Corp. (SMBC) will become the first bank in the country to accept deposits made with Chinese currency, the Asahi Shimbun reports.
SMBC decided to accept yuan deposits after Japan and China agreed on direct trading of their currencies as part of broader financial cooperation. The move underlines growing demand for the Chinese currency while a rise in its value is anticipated.
The bank received requests from depositors to recognize the yuan. SMBC will accept ordinary deposits and time deposits up to one year in maturity starting July 23, with the one-year deposit rate at more than 1% a year, according to Asahi Shimbun. The megabank will also offer loans in yuan to corporate customers.