Resident Foreign Currency Deposits in Korea Continue to Grow

For the third month in a row, resident foreign currency deposits in Korea have shown a significant increase, highlighting the country's robust export performance and the global confidence in its economy.

Detailed Breakdown of the Increase

The Bank of Korea reported on July 23 that the balance of resident foreign currency deposits reached $106.44 billion by the end of June, marking a $5.08 billion increase from the previous month. These deposits encompass all domestic foreign currency holdings by Korean nationals, domestic companies, and foreign companies operating within Korea.

Currency-Specific Trends

Dollar deposits saw the most substantial rise, increasing by $3.6 billion. This surge is attributed to pension funds temporarily depositing overseas investment funds and companies retaining foreign currency from current transactions, thanks to strong exports. Additionally, Chinese yuan and Japanese yen deposits grew by $1.1 billion and $260 million, respectively, due to dividends from overseas subsidiaries being deposited in Korea.