Yuan deposits hit record high in S Korea in June

SEOUL, July 5 (Reuters): Yuan deposits at banks in South Korea inched up by a net $640 million in June to a record high of $11.97 billion, central bank data showed on Friday, but the rate of increase slowed due to an increase in yuan borrowing costs.

It was the 12th straight month for yuan deposits to reach a record high, according to data from the Bank of Korea, but yuan deposit increases have been slowing since reaching $2.02 billion in April and $1.42 billion in May.

The data comes a day after Chinese President Xi Jinping agreed with South Korean President Park Geun-hye on a series of steps aimed at spurring offshore use of the yuan, including launching direct trading of the yuan against the won.