Last Month Foreign Currency Deposits Increased by $3.04 Billion... Yen Deposits Show Record High Increase

Japanese yen banknotes stored at the Hana Bank Counterfeit Response Center in Jung-gu, Seoul [Image source=Yonhap News]

Last month, residents' foreign currency deposits increased by 3.04 billion dollars, showing a rising trend for two consecutive months. Yen deposits recorded the largest increase ever.

According to the "Residents' Foreign Currency Deposit Trends" released by the Bank of Korea on the 24th, residents' foreign currency deposits at foreign exchange banks amounted to 99.83 billion dollars at the end of last month, an increase of 3.04 billion dollars compared to the end of May.

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

The balance of foreign currency deposits had decreased for four consecutive months from January but has shown an increasing trend for two consecutive months since May. The significant increase in yen deposits and the repatriation of overseas retained earnings by companies influenced this trend.

By currency, yen deposits increased by 1.23 billion dollars compared to the end of the previous month, while dollar deposits and euro deposits increased by 1.15 billion dollars and 350 million dollars, respectively.

Yuan deposits also rose by 320 million dollars.

Yen deposits saw the largest monthly increase ever, due to personal surplus funds and securities firms' investor deposit funds. This is interpreted as an effect of the recent sharp decline in the value of the yen.

Dollar and euro deposits increased due to the repatriation of companies' overseas retained earnings and temporary deposits of overseas direct investment funds.

By entity, corporate deposits stood at 85.18 billion dollars and personal deposits at 14.65 billion dollars, increasing by 2.51 billion dollars and 530 million dollars, respectively.

By bank type, domestic banks (deposit balance of 88.19 billion dollars) increased by 1.2 billion dollars, and foreign bank branches (11.64 billion dollars) increased by 1.84 billion dollars.

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