Companies Secure Dollars Amid Uncertainty... Foreign Currency Deposits Increase by $6.78 Billion

[Image source=Yonhap News]

[Asia Economy Reporter Eunbyeol Kim] Foreign currency deposits held by domestic residents, which had sharply declined in February, have increased again.

On the 20th, the Bank of Korea announced, "As of the end of March, foreign currency deposits of residents at foreign exchange banks amounted to $75.29 billion, an increase of $6.78 billion compared to the end of the previous month."

In February, resident foreign currency deposits had decreased by $6.47 billion compared to the previous month, but have now recovered. In February, as the KRW-USD exchange rate surged, companies and individuals sold US dollars.

As of the end of March, dollar deposits stood at $64.46 billion, up by $5.92 billion, and euro deposits were $3.65 billion, an increase of $550 million.

A Bank of Korea official explained, "The increase in dollar deposits appears to be due to delays in spot foreign exchange sales by general companies amid domestic and international uncertainties, securing cash assets, and securities firms' short-term fund deposits. Euro deposits also slightly increased due to securities firms' short-term fund deposits."

Resident foreign currency deposits refer to foreign currency deposits held domestically by nationals, domestic companies, foreigners residing in Korea for more than six months, and foreign companies operating in Korea.

By entity, corporate deposits increased by $6.51 billion, and individual deposits rose by $270 million.

This content was produced with the assistance of AI translation services.