Bank of China plans expansion in Korea due to currency tradeThe Bank of China plans to hire more staff in Korea and expects yuan deposits in the country to triple to a record $20 billion in 2014 as the two nations start direct trading of their currencies.
The number of employees at the local branch of China’s fourth-largest bank by market value may rise to 160 from 135 by year-end as risk management as well as trading in foreign exchange and derivatives expand, Huang De, the lender’s Korea Executive Officer, said in an interview on Thursday in Seoul.
Korea’s central bank reported yesterday that savings in the Chinese currency rose to an all-time high of $16.19 billion in July, compared with the equivalent of $6.67 billion at the end of 2013.
The governments of the two Asian countries agreed on July 3 to make their currencies mutually exchangeable in Seoul and conclude free trade talks by the end of this year.
“Despite the jump in yuan deposits here, it’s still at an early stage of development as savings are mostly by financial institutions,” Huang said in his office.
“Free trade agreements can increase yuan usage by Korean corporates, and consumers can also be attracted by the higher yields.”
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