Foreign Currency Deposits Increased by $2.74 Billion in May Compared to Previous Month... Impact of Corporate Dollar Deposit Expansion

Dollar Deposits at $69.92 Billion and Euro Deposits at $4.14 Billion
Corporate Deposits Increase While Personal Deposits Decrease

[Asia Economy Reporter Jang Sehee] Resident foreign currency deposits increased as corporate dollar deposits grew.

According to the "Resident Foreign Currency Deposit Trends for May 2020" released by the Bank of Korea on the 16th, as of the end of May, resident foreign currency deposits at foreign exchange banks amounted to $90.82 billion, an increase of $2.74 billion compared to the end of the previous month.

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

Resident foreign currency deposits have been increasing since March and continued the upward trend through April and May.

By currency, dollar deposits reached $69.92 billion, increasing by $1.92 billion. The Bank of Korea explained that the increase was due to temporary deposits related to some companies' payment settlements and matured funds from money trusts.

Euro deposits amounted to $4.14 billion, up by $680 million. The Bank of Korea noted that the increase was due to temporary deposits of export proceeds by some companies.

Other currency deposits (such as British pounds and Australian dollars) also rose by $70 million to $1.59 billion.

On the other hand, yen deposits decreased by $10 million to $3.99 billion, influenced by withdrawals for loans to overseas subsidiaries by some companies.

By entity, corporate deposits increased by $2.96 billion to $64.94 billion compared to the previous month.

Conversely, individual deposits decreased by $220 million to $15.98 billion.

Looking at foreign currency deposits by bank type, domestic banks held $70.45 billion, an increase of $1.53 billion from the previous month. Foreign bank branches also increased by $1.21 billion to $10.47 billion.

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