SEOUL, July 4 Yuan deposits at banks in South
Korea inched up by a net $640 million in June to a record high
of $11.97 billion, central bank data showed on Friday, but the
rate of increase slowed due to an increase in yuan borrowing
It was the 12th straight month for yuan deposits to reach a
record high, according to data from the Bank of Korea, but yuan
deposit increases have been slowing since reaching $2.02 billion
in April and $1.42 billion in May.
The data comes a day after Chinese President Xi Jinping
agreed with South Korean President Park Geun-hye on a series of
steps aimed at spurring offshore use of the yuan,
including launching direct trading of the yuan against the won.
A Bank of Korea official said, however, the establishment of
a direct currency market between the two currencies would not
necessarily lead to an increase in yuan deposits in local banks
as it would take time for the market to become fully active.
Foreign currency deposits on a whole fell by $680 million in
June to $58.95 billion as of the end of last month, mainly on a
fall in U.S. dollar deposits.
U.S. dollar-denominated deposits fell by $1.42 billion in
June to $40.67 billion, accounting for 69.0 percent of total
foreign-currency deposits at end-June, compared to the yuan's
20.3 percent, the data showed.
(Reporting by Christine Kim; Editing by Eric Meijer)