Exchange Rate Volatility↑... October Foreign Currency Deposits Reach $100.7 Billion, 'Record High'

'October Resident Foreign Currency Deposit Trends' Announcement
Exchange Rate Hits New High... Resident Foreign Currency Deposits Reach Record High

[Asia Economy Reporter Jang Sehee] Resident foreign currency deposits in October reached an all-time high. This was influenced by significant exchange rate volatility, causing companies to maintain a wait-and-see stance.

According to the "Resident Foreign Currency Deposit Trends in October" released by the Bank of Korea on the 16th, foreign currency deposits held by individuals and companies at the end of last month amounted to $100.77 billion, an increase of $6.57 billion from the previous month. This is the highest level since related statistics began being compiled in June 2012. The previous record was in April at $94.83 billion.

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.

A Bank of Korea official analyzed, "In October, the exchange rate hit the highest point of the year and then immediately dropped," adding, "This led to a wait-and-see effect among companies until the direction of the exchange rate was determined." As the exchange rate fluctuated sharply, companies delayed spot foreign exchange sales.

In fact, on the 12th of last month, the exchange rate surpassed 1,200 won during the day, then stabilized by dropping to around 1,190 won on the 14th and below 1,170 won on the 25th.

The won-dollar exchange rate rose by 11.4 won from an average of 1,170.4 won in September to 1,181.9 won last month.

By currency, dollar deposits increased by $5.37 billion compared to the previous month, euro deposits also rose by $550 million. Yen and yuan deposits increased by $400 million and $130 million, respectively.

Meanwhile, by entity, corporate deposits increased by $6.2 billion, while individual deposits increased by only $370 million.

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