NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 December 2021 24. CASH AND BANK BALANCES As at 31 December As at 31 December 2021 2020 US$’000 US$’000 Cash and cash in bank 1,517,533 1,404,068 Non-pledged fixed time deposits with a maturity period over three months – 2,312 Restricted bank balances 68,550 59,441 Pledged bank deposits (note 25) 52,145 49,609 1,638,228 1,515,430 The Renminbi (“RMB”) is not freely convertible into other currencies, however, under China’s Foreign Exchange Control Regulations and Administration of Settlement, Sale and Payment of Foreign Exchange Regulations, the Group is permitted to exchange RMB for other currencies through banks authorised to conduct foreign exchange business. Cash at banks earns interest at floating rates based on daily bank deposit rates. The bank balances and deposits are deposited with creditworthy banks with no recent history of default. The carrying amounts of the cash and bank balances approximate to their fair values. As at 31 December 2021, the fixed deposit of nil (2020: US$2,312,000) had a maturity period of over 180 days. The balance as at 31 December 2020 was principal-protected and carried the rate of return of 0.83% per annum. The pledged bank deposits at 31 December 2021 was denominated in RMB (2020: RMB). Pledged bank deposits earn interest at interest rates stipulated by the respective financial institutions. The pledged bank deposits represent the amounts pledged to secure bank and other borrowings granted to the Group (note 25). As at 31 December 2021 and 2020, cash and bank balances and deposits of the Group and the Company were considered to be of low credit risk and thus the Group has assessed that the ECL for cash and bank balances was immaterial under the 12-month expected credit loss method. E S R C A Y M A N L I M I T E D A N N U A L R E P O R T 2 0 2 1 199
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