Resident Foreign Currency Deposits Increase by $1.71 Billion: Driven by Corporate Current Transaction Receipts

Bank of Korea Releases “Trends in Resident Foreign Currency Deposits for November”
November Balance at $103.55 Billion... Returns to Growth After Three Months

Resident foreign currency deposits have returned to growth after three months. This was influenced by factors such as the receipt of current transaction payments by companies, deposits of proceeds from foreign currency bond issuances, and deposits of foreign exchange funds for the repayment of foreign currency borrowings.

An employee is organizing US dollars at the Counterfeit Response Center of Hana Bank in Jung-gu, Seoul. Photo by Yonhap News Agency

According to the “Trends in Resident Foreign Currency Deposits for November” released by the Bank of Korea on December 30, the balance of resident foreign currency deposits at foreign exchange banks stood at 103.55 billion US dollars at the end of last month, up by 1.71 billion US dollars from the previous month. Resident foreign currency deposits refer to foreign currency deposits held in Korea by domestic individuals and companies, foreigners who have resided in Korea for more than six months, and foreign companies operating in Korea.

By currency, the increase was centered on US dollar deposits. US dollar deposits rose by 1.96 billion US dollars from the end of the previous month to 87.59 billion US dollars. This increase was driven by the receipt of current transaction payments by companies, deposits of proceeds from foreign currency bond issuances, and deposits of foreign exchange funds for the repayment of foreign currency borrowings. Euro deposits also increased significantly, rising by 390 million US dollars to 5.4 billion US dollars, mainly due to the receipt of current transaction payments by companies. In contrast, Japanese yen deposits declined by 500 million US dollars to 8.13 billion US dollars, mainly due to a decrease in investor deposits at securities firms. In addition, yuan deposits decreased by 100 million US dollars to 1.14 billion US dollars.

By depositor, the increase was mainly led by corporate deposits. Corporate deposits rose by 1.67 billion US dollars to 88.43 billion US dollars. Individual deposits saw a slight increase of 40 million US dollars, reaching 15.11 billion US dollars. By bank, the balance of deposits at domestic banks increased by 2.1 billion US dollars to 88.84 billion US dollars, while deposits at foreign bank branches decreased by 380 million US dollars to 14.7 billion US dollars.