South Korea’s foreign currency deposits experienced a second consecutive month of decline in February, according to recent data released by the central bank. The decrease stems from reduced deposit activity by both individuals and corporations.
At the end of February, outstanding foreign currency-denominated deposits held by residents totaled $117.53 billion, a decrease of $490 million compared to the previous month, according to the Bank of Korea’s latest figures.
This follows a decline in January, the first month-on-month decrease since October. The deposit amounts had previously risen to a record high in November and December, fueled by a weaker Korean won and increased volatility in the foreign exchange market.
The term “residents” encompasses South Korean citizens, foreigners residing in the country for over six months, and foreign companies. Interbank deposits are excluded from this data.
Corporate foreign currency deposits experienced a reduction of $450 million in February, falling to $100.23 billion. Individual holdings also declined by $40 million, reaching $17.31 billion.
Examining the data by currency, U.S. dollar-denominated deposits decreased by $340 million, settling at $96 billion. Japanese yen deposits also saw a decline, decreasing by $210 million to $9.3 billion.
