Selling Dollars Amid Exchange Rate Rise... Resident Foreign Currency Deposits Decrease by 910 Million Dollars in July

[Asia Economy Reporter Jang Sehee] Foreign currency deposits held by domestic residents decreased for the second consecutive month. This is analyzed to be due to increased demand from export companies wanting to sell dollars when they are expensive, as the won-dollar exchange rate rose.

According to the "Trends in Foreign Currency Deposits of Residents in July 2021" announced by the Bank of Korea on the 19th, foreign currency deposits of domestic residents (individuals and companies) stood at 92.13 billion dollars at the end of last month, down 910 million dollars from the end of 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.

With the exchange rate rising in July, both dollar and yen deposits decreased.

By entity, corporate deposits holding export settlement funds decreased by 290 million dollars, and individual deposits decreased by 620 million dollars.

By currency type, US dollar deposits decreased by 780 million dollars to 79.68 billion dollars, euro deposits decreased by 30 million dollars to 4.13 billion dollars, and yen deposits decreased by 380 million dollars to 5.04 billion dollars.

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