Foreign Currency Deposits Increase by $3.3 Billion in July... Dollar and Euro Deposits Rise

Personal Deposits Decrease by 10 Million Dollars

[Image source=Yonhap News]

[Asia Economy Reporter Seo So-jeong] Resident foreign currency deposits increased by more than $3.3 billion last month as corporate deposits in US dollars and euros rose.

According to the resident foreign currency deposit trends for July announced by the Bank of Korea on the 22nd, the balance of resident foreign currency deposits at foreign exchange banks stood at $90.38 billion at the end of last month, up $3.32 billion from the end of the previous month.

Resident foreign currency deposits, which include domestic foreign currency deposits by Korean nationals, domestic companies, foreigners residing in Korea for more than six months, and foreign companies operating in Korea, showed a decline in June but turned to an increase again after one month.

By category, corporate deposits ($75.9 billion) increased by $3.33 billion in one month, while individual deposits ($14.48 billion) decreased by $10 million.

Individual deposits have been declining for seven consecutive months since January this year as individuals' tendency to sell dollars strengthened amid rising exchange rates. The average monthly KRW-USD exchange rate rose from 1,280.8 won in June to 1,307.5 won in July.

By currency, US dollar deposits ($76.47 billion) increased by $2.86 billion, and euro deposits ($5.2 billion) rose by $570 million.

Dollar deposits increased due to delayed spot foreign exchange sales by companies and temporary deposits of funds for overseas direct investment.

Euro deposits increased due to deposits of service transaction payments by some companies and margin recoveries related to overseas derivative transactions by some securities firms.

Japanese yen deposits ($5.48 billion) decreased by $50 million, while Chinese yuan deposits ($1.66 billion) increased by $30 million.

By bank type, domestic banks ($81.59 billion) and foreign bank branches ($8.79 billion) increased by $2.44 billion and $880 million, respectively.

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