Foreign currency deposits shrink sharply in Feb. on declined corporate savings

Foreign currency deposits shrank at the fastest pace in about 11 years in February on decreased corporate savings, central bank data showed Wednesday.

Residents' outstanding foreign currency-denominated deposits reached US$97.52 billion as of end-February, down $11.73 billion from the previous month, according to the data from the Bank of Korea (BOK).

It marked the sharpest on-month shrinkage since June 2012.

Residents include local citizens, foreigners staying here for more than six months and foreign companies. The data excludes interbank foreign currency deposits.

The decline came as companies withdrew their foreign currency deposits to secure funds for investment and settle import transactions, the central bank said.

Corporate deposits came to $82.95 billion as of end-February, down $11.33 billion from the previous month, with individual holdings dropping by $400 million to $14.57 billion.

Dollar-denominated deposits fell by $8.19 billion to $84.15 billion last month and euro-denominated deposits decreased by $2.15 billion to $4.55 billion, according to the data.

Source: Yonhap News Agency

scroll to top