Seoul: Foreign currency deposits in South Korea have increased for the fourth consecutive month in September, primarily driven by companies boosting their U.S. dollar-denominated holdings, according to recent central bank data.
According to Yonhap News Agency, the Bank of Korea reported that residents’ outstanding foreign currency-denominated deposits reached US$104.07 billion at the end of September, marking an increase of $3.66 billion from August. The term ‘residents’ as used in this context includes local citizens, foreigners residing in South Korea for over six months, and foreign companies, but excludes interbank foreign currency deposits.
The data revealed significant growth in deposits across various currencies. Dollar-denominated deposits saw the most substantial rise, increasing by $2.27 billion to a total of $85.84 billion. Japanese yen-denominated deposits also showed notable growth, climbing by $530 million to reach $10.34 billion. Additionally, Euro-denominated deposits increased by $150 milli
on to $4.98 billion, while Chinese yuan-denominated deposits grew by $620 million, totaling $1.66 billion.
On the corporate front, deposits totaled $85.25 billion in September, up $3.5 billion from the previous month. Individual holdings also experienced a growth, albeit smaller, rising by $160 million to $15.32 billion. These figures underscore a continuing trend of increasing foreign currency deposits within the nation, reflecting broader economic activities and possibly the strategic financial decisions of residents and businesses in South Korea.