[사진=게티이미지뱅크]
Chinese yuan deposits increased by nearly 70% in one month. This is the largest increase in 9 years and 5 months since April 2015.
According to ‘Resident Foreign Currency Deposit Trends’ announced by the Bank of Korea on the 21st, the balance of Yuan currency deposits at the end of September was $1.66 billion. It increased by $620 million (approximately 850 billion won) from August ($1.04 billion).
The reason why yuan deposits have increased rapidly is because the proceeds from the sale of companies that withdrew from China were deposited. The Bank of Korea explained, “This is due to the receipt of proceeds from the sale of liquid crystal display (LCD)-related businesses by some companies.”
Domestic LCD companies are taking steps to withdraw from China. A representative example is the sale of LG Display‘s Chinese factory. LG Display announced last month that it had signed a contract to transfer shares of a large LCD panel and module plant in Guangzhou, China to CSOT after approval from the board of directors. The sale price is 10.8 billion yuan (about 2.03 trillion won), and the expected disposal date is March 31, 2025.
The increase in Yuan deposits increased by $1.21 billion in April 2015, the largest increase in 9 years and 5 months. From the end of 2013 to 2015, Yuan deposits increased rapidly as the difference between deposit interest rates at Chinese banks and domestic banks widened. The size of Yuan deposits peaked at $21.7 billion and continued to decline as the swap rate, which is the cost of converting dollars to Yuan, increased and the incentive for arbitrage decreased.
However, the Bank of Korea stated that this surge in the yuan was due to temporary factors. Lee Chang-heon, head of the capital movement analysis team at the Bank of Korea’s international department, explained, “Rather than a trend of domestic companies withdrawing from China, it is interpreted as a temporary effect due to the sale of specific companies.”
As of the end of September, the balance of resident foreign currency deposits at foreign exchange banks was $104.07 billion, an increase of $3.66 billion compared to the end of the previous month, led by corporate deposits. Dollar deposits increased by $2.27 billion to $85.84 billion. The Bank of Korea explained that the increase was due to the deposit of export-import related payments by major companies and the issuance of foreign currency bonds by public institutions.
Yen deposits were recorded at $10.34 billion, an increase of $530 billion from the previous month. It is the largest ever since statistics began to be collected in 2012. The Bank of Korea explained that the increase in U.S. dollar conversion due to the appreciation of the yen was effective. The yen-dollar exchange rate fell from 144.87 yen last August to 142.74 yen last month. Some companies also received dividends.
Reporter Information Seo Min-ji [email protected]
