Seoul: Foreign currency deposits in South Korea fell for the second consecutive month in February, with declines observed in both individual and corporate deposits, as revealed by central bank data.
According to Yonhap News Agency, the outstanding foreign currency-denominated deposits held by residents amounted to US$117.53 billion at the end of February. This marks a decrease of $490 million from the previous month, based on the data from the Bank of Korea (BOK).
The trend began in January when foreign currency deposits saw their first downturn since October, following increases in November and December that pushed the deposits to a record high. The fluctuations were attributed to a weakened won and increased volatility in the foreign exchange market.
The designation of residents includes South Korean citizens, foreigners residing in the country for over six months, and foreign companies. The data specifically excludes interbank deposits.
Corporate deposits in foreign currency saw a reduction of $450 million in February, bringing the total to $100.23 billion. Individual holdings also decreased by $40 million, dropping to $17.31 billion.
Analyzing the deposits by currency, U.S. dollar-denominated accounts decreased by $340 million, settling at $96 billion, and Japanese yen deposits experienced a $210 million drop to $9.3 billion. Conversely, euro-denominated deposits saw an increase of $200 million, reaching $9.59 billion, while Chinese yuan deposits fell by $150 million to $1.23 billion, the data indicated.