SEOUL, March 7 (Xinhua) -- Deposits denominated in the Chinese yuan rose more than 20 times over the past six months in South Korea as local financial institutions raised yuan deposits for arbitrage trading, central bank data showed Friday.
Yuan deposits reached 7.62 billion U.S. dollars as of the end of February, up from 310 million dollars at the end of August last year, according to the Bank of Korea (BOK).
The surge came after financial institutions increased arbitrage trading by converting the South Korean currency into the Chinese yuan to gain interest rate differentials amid expectations for the yuan's appreciation against the dollar.
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