SEOUL Aug 8 Deposits of Chinese yuan rose in July by the
biggest amount on record to $16.2 billion as foreign banks in South Korea ran
campaigns to entice investors into yuan deposits, central bank data
showed on Friday.
Yuan deposits grew a record $4.2 billion in July - a 13th straight gaining
Thanks to the boost in yuan holdings, foreign exchange deposits in banks
nationwide rose to a record $62.5 billion in July, up $3.5 billion from the
Yuan deposits have been on the rise in South Korea since early this year
after authorities decided to allow banks to freely manage deposits, just a few
months after warning Chinese banks in South Korea to refrain from increasing
A Bank of Korea official also said a recent bump in interest rates offered
by Chinese banks had spurred yield-seeking investors to invest more in the yuan.
Meanwhile, U.S. dollar-denominated deposits fell by $0.4 billion to account
for 64.5 percent of all foreign currency deposits at end-July, compared to the
yuan's 25.9 percent, the data showed.
The central bank said corporate foreign exchange deposits had gained by $3.7
billion in July to $56.4 billion whereas deposits owned by private investors
fell $0.2 billion to $6.0 billion. The numbers have been rounded.
(Reporting by Christine Kim; Additional reporting by Yena Park; Editing by Eric