Resident Foreign Currency Deposits at 109.25 Billion USD... Decrease After 5 Months

The foreign currency deposits held by residents in South Korea, which reached an all-time high last month, have declined for the first time in five months.

According to the "Resident Foreign Currency Deposit Trends" released by the Bank of Korea on the 27th, foreign currency deposits of residents at foreign exchange banks stood at $109.25 billion at the end of last month, down $1.73 billion from the end of the previous month.

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

Resident foreign currency deposits had increased for four consecutive months, reaching a record high of $110.98 billion last month, but turned downward again this month.

By currency, dollar deposits decreased by $3.04 billion compared to the end of the previous month, while euro deposits and yen deposits increased by $1.2 billion and $400 million, respectively.

Dollar deposits declined due to corporate payments for import settlements and withdrawals for overseas direct investment funds, while euro deposits increased due to temporary deposits of dividends from overseas subsidiaries by some companies, and yen deposits rose due to deposits for scheduled import payments by some companies.

Corporate deposits ($94.28 billion) decreased by $1.82 billion due to imports and overseas investments, whereas individual deposits ($14.97 billion) increased by $90 million.

Additionally, domestic banks held $98.45 billion, down $1.55 billion, and foreign bank branches held $10.8 billion, down $180 million, respectively.