Busy Hwan-Tech Group... Yen Concentration Phenomenon Continues

[Asia Economy Reporter Buaeri] As the stock and cryptocurrency markets become unstable, interest in safe assets has increased. Currency tech (exchange rate + asset management) enthusiasts are busily flocking to invest in dollars or yen.

According to the financial sector on the 18th, funds are flowing into the weakening yen. The yen deposit balance at the five major banks (KB Kookmin, Shinhan, Woori, Hana, NH Nonghyup) was 598.2 billion yen as of the 13th, an 8% increase compared to last month (553.6 billion yen). Compared to the end of last year, the yen deposit balance increased by 20% (101.5 billion yen).

Although the Bank of Japan has shown its intention to continue a accommodative monetary policy despite the US interest rate hikes, causing the yen-dollar exchange rate to fall to its lowest level in over 20 years, demand has increased expecting a 5-10% exchange gain upon rebound due to the excessive drop. For foreign currency accounts at commercial banks, exchange gains from foreign currency appreciation are also tax-exempt.

Last month, as the dollar strengthened and dollar deposits decreased due to profit-taking, dollar deposits seem to be returning to previous levels. As of the 13th, the dollar deposit balance at the five major commercial banks increased by nearly 3.3 billion dollars (about 6%) in one month, totaling 56.9 billion dollars. This preference for yen and dollar is expected to continue for the time being. Kim Hak-su, team leader at Hana Bank Apgujeong PB Center, said, "As the liquidity market has ended, the preference for safe assets is expected to continue for the time being."

Commercial banks are also actively attracting foreign currency deposits targeting currency tech enthusiasts and the increasing number of travelers as the endemic phase begins. KB Kookmin Bank offers a 100% preferential exchange rate benefit until July 29 for customers who newly subscribe to the 'KB TWO Tech Foreign Currency Time Deposit' through KB Star Banking or internet banking. Shinhan Bank provides preferential exchange rates and various prizes to new foreign currency deposit customers until the end of this month.

Hana Bank offers up to 80% preferential exchange rates to customers holding the Hana Million Dollar account until the end of this month. Woori Bank also runs the 'Woori WON Travel Preparation Kit' event, offering various prizes to customers using the 'Exchange Pocket' and new subscribers to the 'Woori The(The) Dollar Foreign Currency Savings Deposit.'

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