Due to a Rise in Won-dollar Exchange Rate
The Bank of Korea announced on Feb. 18 that residents’ foreign currency deposits in foreign exchange banks decreased by US$4.82 billion to US$89.38 billion last month. The deposits 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.
In the fourth quarter of 2020, the deposits hit an all-time high for three months in a row with the won-dollar exchange rate falling. Last month, however, the exchange rate rose from 1,086.3 won to 1,118.8 won per U.S. dollar and the deposits fell for the first time in four months.
The U.S. dollar deposits decreased US$3.88 billion year on year to US$76.16 billion. Likewise, the euro deposits fell US$350 million to US$4.36 billion. The corporate and individual deposits fell US$4.71 billion and US$110 million to US$69.68 billion and US$19.7 billion, respectively.