Foreign Currency Deposits Hit Record High in July
As the inflow of export and current account payments from large conglomerates coincided with foreign currency funding by securities firms, dollar deposits of domestic residents hit an all-time high last month. As the won/dollar exchange rate fell by more than 120 won in a month, preemptive buying in
In July, residents' foreign currency deposits in Korea reached a record high of $128.34 billion, according to the Bank of Korea. This significant increase of $15.01 billion compared to June was the second-largest monthly rise in history. The surge in dollar deposits, specifically, amounted to $11.12 billion, accounting for 84.9% of the total foreign currency deposits.
Companies played a substantial role in this growth, with their dollar deposits rising by $10.11 billion in July alone. The decline in the won/dollar exchange rate, which fell by over 125 won between June and July, likely contributed to increased demand from companies for dollars needed for future settlements.
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