Due to Increasing Exports
The Bank of Korea announced on August 17 that residents’ foreign currency deposits increased by US$5.5 billion in one month and totaled US$69.1 billion last month.
The foreign currency deposits are divided into those of locals, foreigners who are staying in South Korea for at least six months and foreign enterprises in South Korea. The deposits in bank accounts in South Korea reached US$70.5 billion in March this year and fell to US$63.6 billion in June this year.
Last month, the foreign currency deposits increased as exporting firms changed a lot of their money into U.S. dollars in order to make payments. This purpose accounted for US$4.31 billion out of the total increment. Likewise, yen deposits increased by US$470 million last month, too.
During the same period, foreign currency deposits in South Korean banks increased by US$4.94 billion to US$59.38 billion and foreign currency deposits in foreign bank branches increased by US$560 million to US$9.73 billion. Corporate and individual deposits totaled US$56.54 billion and US$12.57 billion, respectively.