Bank of Korea releases resident foreign-currency deposit data
Dollar deposits reach $108.92 billion at end of July
Balance surpasses $100 billion for the first time in history
Dollar deposits surged by the largest margin in history last month as companies and individuals rushed to buy dollars amid a weakening won, pushing the balance above $100 billion for the first time.
The total balance of resident foreign-currency deposits held at foreign exchange banks stood at $128.34 billion at the end of July, up $15.01 billion from the end of the previous month, according to data on resident foreign-currency deposit trends released by the Bank of Korea on Friday. That is the highest level since the central bank began tracking the data in June 2012. The monthly increase was the largest in seven months, since December last year, when deposits rose by $15.88 billion.
Resident foreign-currency deposits refer to foreign-currency deposits held domestically by Korean nationals, domestic companies, foreigners who have resided in Korea for at least six months, and foreign companies operating in the country.
By currency, dollar deposits saw the biggest gain. The dollar deposit balance reached $108.92 billion at the end of July, up $11.12 billion from the end of the previous month. It was the first time the dollar deposit balance had exceeded $100 billion, and the monthly increase was also the largest since data collection began in June 2012.
The Bank of Korea said dollar deposits grew largely because large corporations received current-account payments, securities firms took in proceeds from foreign-currency bond issuances and customer deposits, and investors made preemptive dollar purchases ahead of further exchange-rate declines.
The monthly average exchange rate in July, based on weekly closing prices, was 1,488.9 won per dollar, down about 2.6 percent from 1,528 won the previous month.
Euro deposits rose $2.22 billion from the end of the previous month to $8.06 billion. The balance was the highest in five months since the end of February ($9.59 billion), and the monthly increase was the largest in seven months since December last year ($6.35 billion). Euro deposits also grew as some companies received current-account payments.
Yen deposits rose $1.5 billion to $8.61 billion, the highest balance in five months since the end of February ($9.3 billion), while the monthly increase was the largest on record. The Bank of Korea said yen deposits grew as some companies set aside funds for dividend payments and securities firms received proceeds from foreign-currency bond issuances.
By depositor type, corporate deposits reached $112.56 billion, up $13.57 billion from the end of the previous month, setting a record high. Corporate dollar deposit balances stood at $95.69 billion, up $10.11 billion from the previous month, marking a record high for the third consecutive month.
Individual deposits rose $1.44 billion to $15.77 billion.
By institution, resident foreign-currency deposits at domestic banks totaled $102.39 billion, up $9.61 billion, while branches of foreign banks held $25.95 billion, an increase of $5.4 billion.
kimstar@heraldcorp.com
