Currency fluctuation
The Bank of Korea announced on November 10 that the balance of the foreign-currency deposits of residents in Korea in foreign exchange banks increased by US$4.21 billion to US$63.4 billion between the end of September and the end of last month. The amount showed an increase for the first time in six months and reached a four-month high since the end of June, when the amount added up to US$64.67 billion.
The foreign-currency deposits include those that are deposited by Koreans, foreigners residing in Korea for at least six months and foreign enterprises doing business in Korea. By currency, the U.S. dollar deposits rose by US$5.98 billion to US$49.45 billion, an all-time high, as exporting firms deposited more payments with the won-dollar exchange rate falling from 1,194.5 won to 1,142.3 won per U.S. dollar during the period.
On the contrary, the yuan deposits showed a decline as matured time deposits were withdrawn and arbitrage trading lost its appeal. The balance decreased by US$2.24 billion to US$7.19 billion, the lowest level since the end of December of 2013.
The yen deposits increased by US$170 million from a month ago to US$3.3 billion and the euro deposits increased by US$230 million to US$2.32 billion.