Foreign currency deposits at South Korean banks fell by the steepest pace in 10 months in July, due mostly to a decline in Chinese yuan-denominated deposits, central bank data showed Friday.
Outstanding foreign currency deposits held by local residents reached $60.87 billion as of end-July, down $3.8 billion from the previous month, according to the Bank of Korea.
The monthly decline marks the biggest fall since a $4.9 billion decline in September last year.
Residents include individual citizens, firms and foreign nationals who have stayed in South Korea more than six months. The data excludes inter-bank foreign currency deposits.
The sharp fall was attributed to a fall in yuan deposits. Local branches of Chinese lenders did not redeposit their maturing holdings due to unfavorable investment circumstances.
Yuan deposits totaled $14.3 billion at the end of last month, down $4.2 billion from the previous month and reaching the lowest level since June last year.
Deposits in the greenback, in contrast, gained $420 million to $40.4 billion as of end-July, according to the data. (Yonhap)
