Foreign Currency Deposits Hit Another Record High in April... $94.8 Billion

[Asia Economy Reporter Kim Eun-byeol] Resident foreign currency deposits increased by about $2.1 billion last month, mainly driven by corporations, breaking the record for the highest amount ever again.

According to the "Resident Foreign Currency Deposit Trends in April" released by the Bank of Korea on the 17th, the balance of resident foreign currency deposits at foreign exchange banks as of the end of last month was $94.83 billion.

This is an increase of $2.13 billion compared to March ($92.7 billion) and also the largest amount ever, surpassing the previous record of $94.2 billion in December last year.

Resident foreign currency deposits refer to foreign currency deposits held domestically by nationals, domestic corporations, foreigners residing in Korea for more than six months, and foreign companies operating in Korea.

By category, corporate deposits ($74.79 billion) increased by $1.46 billion, and individual deposits ($20.04 billion) increased by $670 million.

Looking at the currency types, dollar deposits ($81.78 billion) increased by $2.43 billion, while yen deposits ($5.41 billion) and euro deposits ($4.15 billion) decreased by $110 million and $200 million, respectively.

A Bank of Korea official explained, "The increase in dollar deposits was due to corporations depositing export proceeds and overseas bond issuance proceeds, as well as an expansion in individuals' spot foreign exchange purchases following the decline in the KRW/USD exchange rate."