Won-Dollar Exchange Rate Decline Reduces Corporates' Spot FX Sales
Dollar Deposits Increase Mainly Among Corporates
[Asia Economy Reporter Shim Nayoung] Resident foreign currency deposits amounted to 79.44 billion dollars in December last year, an increase of 4.57 billion dollars from the previous month.
According to the 'Resident Foreign Currency Deposit Trends in December' released by the Bank of Korea on the 21st, out of the 79.44 billion dollars, corporate deposits accounted for 61.99 billion dollars, and individual deposits were 17.55 billion dollars. These increased by 3.93 billion dollars and 640 million dollars, respectively.
By currency, dollar deposits increased by 4.82 billion dollars, while yen and euro deposits decreased by 30 million dollars and 190 million dollars, respectively.
Chae Hee-kwon, head of the Capital Movement Analysis Team at the Bank of Korea's International Department, analyzed, "As the won-dollar exchange rate declined, corporates reduced their spot FX sales, leading to an increase in dollar deposits." The won-dollar exchange rate fell from 1,181.2 won at the end of November to 1,156.4 won at the end of December.
Yen deposits decreased due to some corporates repaying overseas borrowings.
By bank type, domestic banks saw an increase of 3.72 billion dollars to 66.92 billion dollars, and foreign bank branches increased by 850 million dollars to 12.52 billion dollars.
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