"Sell Dollars as Exchange Rates Rise"…Foreign Currency Deposits Decrease by $5.4 Billion in March

by Seo Sojeong

Published 19 Apr.2022 13:10(KST)

[Image source=Yonhap News]

[Asia Economy Reporter Seo So-jeong] Resident foreign currency deposits decreased by about $5.4 billion last month due to corporate overseas investment fund withdrawals and individual dollar sales.

According to the "Resident Foreign Currency Deposit Trends" announced by the Bank of Korea on the 19th, as of the end of March this year, the balance of resident foreign currency deposits at foreign exchange banks was $92.71 billion, down $5.43 billion from the end of February.

By entity, corporate deposits ($76.34 billion) decreased by $4.47 billion, and individual deposits ($16.37 billion) decreased by $960 million.

By currency, US dollar deposits ($78.55 billion) and euro deposits ($5.05 billion) decreased by $4.88 billion and $560 million, respectively. In contrast, yen deposits ($5.73 billion) increased by $340 million.

A Bank of Korea official explained, "In the case of dollar deposits, the decrease was due to corporate overseas investment funds and import payment withdrawals, as well as an expansion of individual spot foreign exchange sales," adding, "Euro deposits decreased due to spot foreign exchange sales by some companies."

The average daily won-dollar exchange rate rose by 23.5 won from 1,197.8 won in February to 1,221.3 won in March.