Yuan deposits in S.Korea fall in July on lower interest rates

By: | Published: August 7, 2015 8:32 AM

Yuan-denominated deposits at banks in South Korea plunged in July as a large amount of one-year savings deposits came to maturity amid falling interest rates on the Chinese currency, official data showed on Friday.

Yuan-denominated deposits at banks in South Korea plunged in July as a large amount of one-year savings deposits came to maturity amid falling interest rates on the Chinese currency, official data showed on Friday.

Yuan deposits fell by a net $4.18 billion during July to  $14.32 billion, marking the biggest monthly decline since records began in July 2012, the data from the South Korean central bank showed.

The Bank of Korea said in a statement the decline came a year after one-year savings deposits in the Chinese currency rose sharply in July last year, which at that time had pushed total yuan deposits up by a net $4.22 billion.

An official at the Bank of Korea said falling interest rates on yuan deposits have discouraged depositors from retaining their money.

The Bank of Korea publishes monthly data on foreign-currency deposits at banks by South Korean residents, foreigners staying in the country for more than six months and foreign companies operating in the country.

As of the end of July, 66.4 percent of all foreign currency-denominated deposits was in dollars, followed by 23.5 percent in the yuan.

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