Foreign currency deposits rise to all-time high in July

Foreign currency deposits in Korea rose by the largest amount in seven months to a record high in July, driven by a sharp increase in dollar savings, central bank data showed Friday.

Outstanding foreign currency-denominated deposits held by residents stood at $128.34 billion at the end of July, up $15.01 billion from a month earlier, according to data from the Bank of Korea (BOK).

It marked the highest level since the BOK began compiling the data in June 2012, as well as the largest on-month increase since December, when the figure rose by $15.88 billion.

The reading has increased every month since April.

Residents include Korean citizens, foreigners who have lived in the country for more than six months and foreign companies. The data excludes interbank deposits.

By currency, U.S. dollar-denominated reserves increased by $11.12 billion to $108.92 billion, marking the largest on-month gain and highest balance since June 2012.

Euro-denominated savings also gained $2.22 billion to $8.06 billion, while Japanese yen deposits increased $1.5 billion to $8.61 billion.

Corporate foreign currency deposits rose $13.57 billion to $112.56 billion, while individual holdings increased $1.44 billion to $15.77 billion.

The BOK said the sharp rise in foreign currency deposits was driven by increased dollar receipts by exporting companies and funds held by local brokerages for investments in foreign bonds.

Yonhap