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Foreign currency deposits up in Oct. on rise in dollar savings

Economy 12:00 November 21, 2022

SEOUL, Nov. 21 (Yonhap) -- Foreign currency deposits at banks in South Korea expanded in October as dollar savings spiked amid the greenback's ascent in value, central bank data showed Monday.

Residents' outstanding foreign currency-denominated deposits reached US$97.65 billion as of end-October, up $8.15 billion from the previous month, according to the data from the Bank of Korea (BOK).

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

The rise came as dollar-denominated savings that accounted for nearly 90 percent of all foreign currency deposits grew apparently as people parked more dollars amid the greenback's steep rise in value.

The dollar has rallied against major currencies, driven by the U.S. central bank's aggressive rate hikes. The won has depreciated about 11 percent against the greenback so far this year.

Dollar savings expanded $7.54 billion on-month to $84.48 billion at the end of October, the data showed.

The BOK said that dollar deposits increased mostly as businesses stuck to or expanded dollar holdings.

Corporate foreign currency savings amounted to $83.38 billion in October, up $7.82 billion from a month earlier. Individuals' foreign currency savings were also up $330 million to $14.27 billion, the data showed.

Foreign currency deposits up in Oct. on rise in dollar savings - 1


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