Foreign Currency Deposits
Foreign currency deposits in South Korea in May went up by more than US$2.5 billion (2.86 trillion won).
The Bank of Korea (BOK) announced on June 15 that the total resident foreign exchange deposits increased by US$2.55 billion ((2.91 trillion won) to US$69.94 billion (79.87 trillion won) through its report titled “Resident Foreign Exchange Deposit Trend in May.” Resident foreign exchange deposits refer to those owned by residents, including South Koreans and foreigners who have stayed here for over six months, and foreign companies which run business in South Korea.
The deposits reached a record high to US$70.54 billion (80.56 trillion won) at the end of March, decreased to US$67.39 billion (76.96 trillion won) at the end of April and then increased again later. The BOK said, “The dollar-denominated deposits grew as large companies deposited their funds that were earned from exports and postponed the sale of the spot exchanges.”
The dollar-denominated owned by businesses increased by US$1.44 billion (1.64 trillion won). This was largely due to the won/dollar exchange rates. The won/dollar exchange rate was 1,119.5 won against the dollar as of end-May, down 18.4 won from a month ago. The weaker dollar discouraged businesses from selling the dollars.