31.   Higher U.S. rates increase the allure of dollar deposits and bonds.

32.   If residents shift their money out of Hong Kong dollar deposits, dump real estate and sell shares, the Hong Kong dollar may come under pressure.

33.   In February, the central bank governor Gabriel Singson said he opposes proposals to introduce reserve requirements on dollar deposits.

34.   In recent days, the U.S. currency had gained amid speculation the central bank would cut rates, making dollar deposits more attractive.

35.   Lower German rates help the dollar by making mark-denominated bank deposits less attractive than dollar deposits.

36.   Lower German rates often help the dollar by making mark-denominated deposits less attractive relative to dollar deposits.

37.   Lower rates make Australian dollar deposits and bonds less attractive to investors.

38.   Meanwhile, the central bank cuts interest rates on dollar deposits, which could mean another cut in domestic interest rates is in the works.

39.   Most big banks advertise for dollar deposits.

40.   Officials now say that dollar deposits will be converted to pesos, though probably indexed to inflation.