Foreign Currency Deposits in August Reach $88.54 Billion... Record High

[Image source=Yonhap News]

[Asia Economy Reporter Kim Eunbyeol] In August, the foreign currency deposits of residents in South Korea reached a new all-time high once again.

According to the "August Resident Foreign Currency Deposit Trends" released by the Bank of Korea on the 17th, the balance of resident foreign currency deposits at foreign exchange banks as of the end of last month was $88.54 billion, an increase of $1.14 billion 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.

The foreign currency deposit balance at the end of August is the largest since the statistics were first compiled in June 2012. Since the foreign currency deposit balance before 2012 was significantly lower than now, the balance at the end of August is effectively the highest ever. Resident foreign currency deposits have been on the rise since February this year (balance of $68.51 billion).

By entity, corporate deposits in August ($70.99 billion) increased by $1.3 billion, while individual deposits decreased by $160 million to $17.55 billion.

By currency type, euro deposits ($4.15 billion) and US dollar deposits ($76.59 billion) increased by $540 million and $370 million respectively compared to the previous month. A Bank of Korea official explained, "Euro deposits increased due to temporary fund deposits by non-bank financial institutions, and although individual US dollar deposits decreased by $180 million, corporate deposits (+$550 million) increased mainly due to payment deposits by general companies."

Yen deposits increased by $320 million to $4.76 billion, due to yen deposits for dividend payments by some companies.

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