SEOUL, January 26 (AJP) -Foreign-currency deposits at South Korea-based banks surged by nearly $16 billion in December on prolonged weakness in the Korean won, central bank data showed.
The Bank of Korea said Monday that resident foreign-currency deposits at local foreign-exchange banks totaled $119.43 billion at the end of December, up $15.88 billion from the previous month. It marked the second consecutive monthly increase.
Resident foreign-currency deposits include holdings by South Korean individuals and companies, foreigners who have lived in South Korea for at least six months, and foreign companies operating in the country.
By currency, U.S. dollar deposits climbed $8.34 billion to $95.93 billion, while euro deposits rose $6.35 billion to $11.75 billion. Japanese yen deposits increased by $870 million to $9.0 billion.
A Bank of Korea official said dollar deposits expanded as funds flowed into banks for multiple purposes, including about $2.0 billion related to foreigners’ purchases of equity stakes in South Korean companies, current-account settlements by exporters and importers, and investor funds held by securities firms.
Euro deposits rose as foreign-affiliated companies placed funds tied to current-account payments due early in the year, including proceeds from discounting foreign-currency sales receivables, the official said. Yen deposits increased mainly due to investor deposits at securities firms.
By depositor type, corporate foreign-currency deposits jumped $14.07 billion to $102.5 billion, while individual deposits rose $1.82 billion to $16.93 billion.
By bank type, deposits at domestic banks increased $12.76 billion to $101.6 billion, while those at local branches of foreign banks rose $3.13 billion to $17.83 billion.
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