The Bank of Korea announced on July 15 that residents’ foreign currency deposits in foreign exchange banks increased by US$4.77 billion to US$70.38 billion last month. The deposits, which rebounded in May this year after falling for three months in a row, can be defined as those owned by local individuals and companies, foreigners staying for at least six months in South Korea, and foreign companies doing business in South Korea.
U.S. dollar deposits increased US$4.25 billion to US$59.9 billion. “The increase is attributable to companies depositing their export and import payments and individuals buying spot exchange with the won-dollar exchange rate falling from 1,190.9 won to 1,154.7 won per U.S. dollar,” the central bank explained.
The yen deposits increased US$290 million to US$4.16 billion as companies bought spot exchange amid a won-yen exchange rate decline. The euro deposits increased US$220 million to US$3.39 billion and the others including the British pound and the Australian dollar increased US$100 million to US$1.58 billion. The yuan deposits, meanwhile, decreased US$90 million to US$1.35 billion.
The corporate deposits rose US$3.94 billion to US$55.67 billion and the individual deposits rose US$830 million to US$14.71 billion. South Korean banks’ foreign currency deposits increased US$4.61 billion to US$60.54 billion and those of foreign bank branches in South Korea rose US$160 million to US$9.84 billion.