Resident Foreign Currency Deposits Increase for 4 Consecutive Months... Corporate Dollar Deposits Expand

An employee is organizing US dollars at the Hana Bank Counterfeit Response Center in Jung-gu, Seoul. Photo by Jinhyung Kang aymsdream@

As corporate dollar deposits related to exports and imports increased, resident foreign currency deposits rose for the fourth consecutive month.

According to the Bank of Korea's report on resident foreign currency deposits trends for September released on the 21st, the balance of resident foreign currency deposits at foreign exchange banks stood at $104.07 billion at the end of last month, up $3.66 billion from the end of the previous month.

By currency, dollar deposits increased by $2.27 billion compared to the end of the previous month. The Bank of Korea explained that dollar deposits rose due to companies' deposits related to export and import payments and public institutions' issuance of foreign currency bonds.

During the same period, yuan deposits also increased by $620 million, and yen deposits rose by $530 million. Yuan deposits increased due to some companies receiving proceeds from business sales, while yen deposits grew due to some companies receiving dividends and an increase in the dollar-equivalent amount caused by yen appreciation.

By entity, corporate deposits increased by $3.5 billion, and individual deposits rose by $160 million. By bank type, domestic banks saw an increase of $3.7 billion, whereas foreign bank branches experienced a decrease of $40 million.