Foreign Currency Deposits Increase by $2.2 Billion in May... Rise After 3 Months

[Image source=Yonhap News]

[Asia Economy Reporter Seo So-jeong] As foreign currency deposits of export-import companies increased, residents' foreign currency deposits rose for the first time in three months last month.

According to the "Residents' Foreign Currency Deposit Trends" announced by the Bank of Korea on the 22nd, as of the end of May, the balance of residents' foreign currency deposits at foreign exchange banks was $89.17 billion, an increase of $2.18 billion from the end of the previous month.

Residents' foreign currency deposits refer to domestic foreign currency deposits held by nationals and domestic companies, foreigners residing in Korea for more than six months, and foreign companies operating in Korea.

By entity, corporate deposits ($73.91 billion) increased by $2.26 billion. Individual deposits ($15.26 billion) decreased by $80 million, continuing a decline for five consecutive months.

By currency, U.S. dollar deposits ($75.35 billion) and euro deposits ($5.13 billion) increased by $2.17 billion and $120 million, respectively.

On the other hand, Japanese yen deposits ($5.48 billion) decreased by $180 million, and Chinese yuan deposits ($1.48 billion) decreased by $80 million.

A Bank of Korea official said, "In the case of dollar deposits, corporate deposits increased due to export-import settlement payments, while individual deposits slightly decreased," adding, "Euro deposits increased due to the recovery of margin related to overseas derivative transactions by some securities firms."

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