Money

S Korea mulls RMB-denominated assets investments

(Xinhua)
Updated: 2011-05-04 14:28

SEOUL - South Korea's central bank is mulling investments in the yuan-denominated assets in a bid to brace for the internationalization of the Chinese currency in the long term.

"The central bank applied to China for qualified foreign institutional investor (QFII) status to be able to invest its foreign exchange reserves in yuan-denominated assets," an official at the Bank of Korea (BOK) told Xinhua.

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The official noted the move aims to prepare for the Chinese currency's internationalization over the long haul amid China's growing influence in the global markets.

He, however, said it would take more than one year to get an approval from the Chinese authorities, hinting there would be no immediate change in the reserves' portfolio.

His comment came as South Korea's foreign reserves topped the $300 billion mark for the first time in April. The country's foreign reserves reached $307.2 billion as of the end of April, up $8.58 billion from the previous month.