Euro deposits in S.Korea fall on Brexit effect

The European single currency-denominated deposits in South Korea fell last month as worries emerged on the euro following Brexit, or British referendum to leave the European Union (EU), central bank data showed on Friday.

The euro-denominated deposits stood at 2.73 billion U.S. dollars as of end-June, down 0.9 billion dollars from a month earlier, according to the Bank of Korea (BOK).

It marked the largest monthly fall since the bank began compiling the data in 2000, surpassing the previous reduction of 0.55 billion dollars in February 2012 when the European fiscal crisis peaked.

Demand for the euro weakened on concerns about the Brexit that had caused uncertainties in the global financial market as well as in Europe. The euro had since depreciated against its peers.

Meanwhile, overall foreign currency-denominated deposits increased 2.76 billion dollars from a month earlier to 59.61 billion dollars as of end-June.

The U.S. dollar deposits increased 3.1 billion dollars to 50.0 billion dollars, with those denominated in the Chinese currency growing 0.28 billion dollars to 1.89 billion dollars. The Japanese yen-denominated deposits rose 0.2 billion dollars to 3.6 billion dollars. Endit