Chinese yuan-denominated deposits at banks in South Korea increased at the fastest clip last month, touching a fresh high, as investors flocked to park their money in yuan accounts, central bank data showed today.
The yuan-denominated deposits held by residents reached US$16.2 billion in July, growing by a record $4.2 billion from the previous month, according to the Bank of Korea.
Yuan deposits have been trending higher since late last year, with monthly gains logging a previous record of $2.5 billion in November 2013.
Buoyed by the record on-month increase, the portion of yuan deposits among all foreign currency deposits soared to a record 25.9 percent, compared with 20.3 percent in June.
A central bank official said that Chinese yuan deposits expanded at a record pace as local institutions beefed up their yuan deposits at Chinese lenders based in South Korea.
Overall foreign currency deposits came in at $62.5 billion in July, breaking the $60 billion mark for the first time.
Source: Busan eFM News