Companies Secure Dollars... Foreign Currency Deposits Increase by $2.89 Billion in April

[Image source=Yonhap News]

[Asia Economy Reporter Eunbyeol Kim] Due to the continued demand for securing cash in US dollars amid the spread of the novel coronavirus infection (COVID-19), foreign currency deposits held by residents in South Korea increased by nearly 3 billion dollars last month.

According to the "Resident Foreign Currency Deposit Trends for April 2020" announced by the Bank of Korea on the 20th, as of the end of April, the balance of resident foreign currency deposits at foreign exchange banks stood at 78.18 billion dollars, an increase of 2.89 billion dollars compared to the previous month.

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. Resident foreign currency deposits showed a declining trend in January and February but turned to an increase in March, continuing through April.

By currency, US dollar deposits increased by 3.54 billion dollars to 68 billion dollars. In contrast, Japanese yen deposits (4 billion dollars) decreased by 190 million dollars. By holder type, corporate deposits (61.98 billion dollars) increased by 2.63 billion dollars, and individual deposits (16.2 billion dollars) increased by 260 million dollars, respectively.

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