Due to Dollar Strength... Resident Foreign Currency Deposits Decrease by 2.1 Billion Dollars

(Data provided by Bank of Korea)

As the US dollar strengthened, foreign currency deposits held by domestic individuals and companies decreased by more than 2.1 billion dollars.

According to the 'Resident Foreign Currency Deposits in June' released by the Bank of Korea on the 22nd, resident foreign currency deposits at foreign exchange banks amounted to 87.06 billion dollars last month, down 2.11 billion dollars from the end of the previous month.

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

After decreasing from 98.14 billion dollars at the end of February to 86.99 billion dollars at the end of April, the amount increased to 89.17 billion dollars at the end of May but turned downward again last month.

Dollar deposits, which account for 84.6% of total foreign currency deposits, decreased by 1.74 billion dollars.

The Bank of Korea explained, "Dollar deposits decreased due to corporate import payment settlements, withdrawals of overseas investment funds, and increased spot foreign exchange sales by individuals."

As the daily average won-dollar exchange rate rose from 1,268.4 won in May to 1,280.8 won in June, it is interpreted that the sentiment to sell foreign currency increased.

Euro deposits, which account for 5.3% of the total, decreased by 500 million dollars compared to the end of the previous month. The Bank of Korea explained that euro deposits decreased due to margin payments related to overseas derivative transactions by some securities firms and spot foreign exchange sales.

By bank type, domestic banks held 79.15 billion dollars, down 1.12 billion dollars, and foreign bank branches held 7.91 billion dollars, down 990 million dollars.

Corporate deposits (72.57 billion dollars) and individual deposits (14.49 billion dollars) decreased by 1.34 billion dollars and 770 million dollars, respectively.

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