Foreign currency deposits rise to record high of $140.6 billion in August

Foreign currency deposits in Korea rose to a record high in August, driven by a sharp increase in dollar savings, central bank data showed on Thursday.

Outstanding foreign currency-denominated deposits held by residents stood at $140.6 billion at the end of August, up $12.3 billion from a month earlier, the Bank of Korea (BOK) said.

The figure is the highest since the BOK began compiling such data in June 2012.

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, dollar-denominated deposits increased by $11 billion to $119.9 billion, marking the highest balance since June 2012.

Euro-denominated savings also gained $1.1 billion to $9.2 billion, and yen deposits increased $320 million to $8.9 billion.

Corporate foreign currency deposits rose $10.9 billion to $123.5 billion, and individual holdings increased $1.4 billion to $17.1 billion.

The BOK said that 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