Foreign currency deposits hit record $140.62 billion

According to data released Thursday by the Bank of Korea, foreign exchange reserves stood at $442.28 billion in August, up $14.33 billion from the previous month ($427.95 billion) — the largest monthly increase on record, driven in part by an expansion in export proceeds. An employee examines dollar bills at Hana Bank's counterfeit response center in Jung-gu, Seoul, that afternoon. Photo by Lim Se-jun
According to data released Thursday by the Bank of Korea, foreign exchange reserves stood at $442.28 billion in August, up $14.33 billion from the previous month ($427.95 billion) — the largest monthly increase on record, driven in part by an expansion in export proceeds. An employee examines dollar bills at Hana Bank's counterfeit response center in Jung-gu, Seoul, that afternoon. Photo by Lim Se-jun

Resident foreign currency deposits reached $140.62 billion at the end of August, the highest level since the Bank of Korea began tracking the data in June 2012. Corporate dollar deposits crossed the $100 billion mark for the first time.

According to the Bank of Korea's resident foreign currency deposit trend report released Thursday, the balance of resident foreign currency deposits held at foreign exchange banks stood at $140.62 billion at the end of August, a record since data collection began in June 2012. The figure rose $12.28 billion from the end of the previous month ($128.34 billion), marking a record for the second consecutive month. However, the pace of increase slowed from the prior month's gain of $15.01 billion.

Resident foreign currency deposits cover foreign currency holdings in domestic accounts by Korean nationals, domestic companies, foreigners who have resided in Korea for at least six months, and foreign companies operating in the country.

The dollar deposit balance rose $10.99 billion from the end of the previous month ($108.92 billion) to $119.91 billion, setting a new record for the third consecutive month.

However, the increase was smaller than the prior month's gain of $11.12 billion.

Corporate dollar deposits led the way, climbing $9.96 billion from the end of the previous month ($95.69 billion) to $105.64 billion — surpassing $100 billion for the first time and extending a record-setting streak to four consecutive months. The pace of increase narrowed from the prior month's gain of $10.11 billion.

The Bank of Korea said dollar deposits grew on the back of trade payment receipts by large conglomerates, inflows of investor deposits at securities firms, and advance dollar purchases prompted by a falling exchange rate.

Euro deposits rose $1.1 billion from the end of the previous month to $9.16 billion, the highest level since the end of February ($9.59 billion) — a six-month high.

Yen deposits increased $320 million to $8.94 billion, also the highest since the end of February ($9.3 billion). The pace of increase slowed considerably from the prior month's gain of $1.5 billion.

The Bank of Korea said euro deposits grew due to trade payment receipts, while yen deposits rose on inflows of investor deposits at securities firms.

Corporate deposits totaled $123.49 billion, up $8.78 billion, while individual deposits rose $1.22 billion to $17.12 billion.

By institution, resident foreign currency deposits at domestic banks increased $7.88 billion to $110.86 billion, while branches of foreign banks rose $2.12 billion to $29.76 billion.


kimstar@heraldcorp.com