The People’s Bank of China (PBOC) has banned foreign firms from putting funds into renminbi-denominated time deposit instruments, Dow Jones reported, citing an article in state media which in turn cites an unnamed source. According to the source, the PBOC recently informed foreign and local banks operating in China that foreign firms may only put renminbi into onshore savings accounts, where the interest rate is 0.36%, far below the 2.5% interest rate for one-year time deposit accounts. The decision is attributed to concerns that foreign firms may pour funds into China to take advantage of higher interest rates and speculation that the renminbi’s exchange rate will rise. The report cited bankers as saying the move could prompt foreign banks to shift their renminbi deposits to Hong Kong.