Resident foreign currency deposits in South Korea have surpassed $150 billion for the first time, continuing an upward trend for three consecutive months. This increase is attributed to large corporations' current account receipts and inflows of investor deposits from securities firms.
According to the Bank of Korea's report on 'Trends in Resident Foreign Currency Deposits' released on October 28, the total amount of resident foreign currency deposits at domestic foreign exchange banks reached $154.71 billion at the end of September, an increase of $14.09 billion from the previous month.
This marks a record high for three consecutive months, following increases in July and August. The monthly increase also expanded compared to August's rise of $12.28 billion.
Resident foreign currency deposits refer to deposits held by South Korean nationals, domestic companies, foreigners residing in South Korea for more than six months, and foreign companies operating in the country.
By currency, dollar deposits increased by $12.99 billion to $132.9 billion, marking the first time dollar deposits have exceeded $130 billion.
Deposits in yen rose by $550 million to $9.49 billion, while euro deposits increased by $370 million to $9.53 billion. Deposits in yuan also saw a rise of $30 million, reaching $1.27 billion.
The Bank of Korea explained, "The increase in dollar deposits was driven by large corporations' current account receipts, inflows of investor deposits from securities firms, and funds from state-owned enterprises issuing foreign currency bonds." It added, "Yen deposits increased due to a rise in currency exchanges for travel amid yen depreciation, while euro deposits grew due to current account receipts."
By sector, corporate deposits amounted to $136.6 billion, an increase of $13.11 billion from the previous month. Personal deposits rose by $9.81 billion to $18.11 billion, with corporate deposits accounting for 88.3% of total foreign currency deposits.
By bank, domestic banks reported foreign currency deposits of $120.04 billion, an increase of $9.18 billion from the previous month. Foreign bank branches in South Korea saw their deposits rise by $4.91 billion to $34.67 billion.
* This article has been translated by AI.
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