Seoul, Sep 8 (IANS): Foreign currency deposits in South Korea reduced for four straight months due to low demand for yuan-denominated deposits.
Foreign currency-denominated deposits by local residents amounted to $59.69 billion as of end-August, down $1.18 billion from the previous month, Xinhua quoted the Bank of Korea as saying on Tuesday.
After peaking at $68.04 billion in April, the deposits denominated in foreign currencies continued to decline for four months in a row.
The decline was led by weaker demand for yuan-denominated deposits, which fell $3.68 billion last month on the back of lower deposit rates and higher costs for currency risk hedges.
The yuan deposits continued to fall to $10.63 billion as of end-August, plunging from a peak of $21.7 billion at the end of October last year.
The dollar deposits increased $2.28 billion from a month earlier to $42.71 billion as of end-August.