SEOUL: Yuan deposits at banks in South Korea rose US$270mil to a record US$7.9bil at the end of March, central bank data showed on Friday, while foreign exchange deposits shrank last month.
The Bank of Korea data showed foreign exchange deposits at foreign banks in the country rose US$1.7bil in March to US$15bil, mainly due the increase in yuan holdings.
However, foreign exchange deposits at local banks fell US$3.2bil to US$36.2bil.
The central bank statement did not give a specific reason for the rise in yuan holdings, but these deposits have surged since last year due to higher returns in China.
Foreign exchange deposits in all banks in South Korea slipped US$1.6bil to US$51.1bil at end-March, compared to US$52.7bil at end-February. – Reuters