Bank Foreign Currency Deposits Hit Record High in January

SEOUL, Feb. 7 (Yonhap) – Foreign currency deposits in South Korean banks rose to a record high in January on sales of overseas bonds, the central bank said Friday.

Outstanding foreign currency-denominated deposits held by residents reached US$49.2 billion as of end-January, up US$760 million from the previous month, according to the Bank of Korea.

Residents include local citizens, foreigners staying here for more than six months and foreign companies. The data excludes inter-bank foreign currency deposits.

The dollar-denominated deposits rose by US$720 million on-month to US$36.63 billion as some state-run companies put the proceeds of overseas bonds into such deposits. The yuan-denominated deposits gained US$890 million to US$7.56 billion.

Companies’ holdings of FX deposits advanced US$1.02 billion to US$44.03 billion while such deposits held by individuals fell $260 million to US$5.17 billion, it added.

In June last year, the government unveiled plans to encourage local banks to secure more foreign currency deposits in a bid to protect against external shocks.