South Korea forex deposits fall

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.

–Indo-Asian News Servcie

py/vm

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