SEOUL, Sept 5 South Korea's dollar deposits rose
in August because of an increase in trade-related funds, after
slipping in July, central bank data showed on Friday, and yuan
deposits also went up as investors continued to show interest in
Dollar deposits rose $3.8 billion last month to stand at a
total of $42.1 billion, while yuan deposits increased
$1.8 billion to $20.0 billion, the Bank of Korea data showed.
The central bank said the rise in dollar deposits was due to
an increase in the amount of money deposited by exporters and
importers in August.
"Dollar deposits rise when importers buy dollars in advance
for future purchases or when exporters deposit their profits and
... they can't do it when they don't have the money," said an
official at the central bank, who declined to be named.
"There are some seasonal factors that affect deposits, but
they mostly follow (trade) trends."
In August, average exports per working day rose 3.1 percent
from a year earlier, the seventh straight month of annual gains,
although exports fell overall on a yearly basis. Imports gained
an annual 3.1 percent in August.
As of end-August, dollar-denominated deposits accounted for
61.4 percent of all foreign exchange accounts in South Korea,
while yuan deposits accounted for 29.1 percent, the data showed.
South Korea's total foreign exchange deposits rose in August
to a record high of $68.6 billion, helped by the dollar and yuan
(Reporting by Christine Kim; Editing by Alan Raybould)