Chinese banks have been instructed by the People's Bank of China (PBOC) to reduce interest rates on U.S. dollar deposits. This decision comes amid concerns over rising dollar deposits, which the central bank aims to curb to support a weakening yuan. The interest rate cuts are expected to impact mainland retail investors and exporters, who have increasingly turned to dollar deposits as borrowing in yuan becomes more attractive. Reports indicate that the reduction in rates is a strategic move by the PBOC to restore confidence in the Chinese economy and manage foreign exchange deposits effectively.