April 19, 2024

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Foreign currency deposits held by banks in South Korea increased in May, central bank data showed on June 17, as both individuals and companies apparently sought to expand their foreign exchange holdings amid the weakening of the local currency.

As of end-May, foreign currency savings here came to $65.61 billion, up $2.41 billion from the month before, according to the data from the Bank of Korea.

“The amount increased as local companies delayed exchanging their currency holdings on hope of further appreciation, while individuals expanded their foreign currency holdings,” the bank said in a press release.

The dollar closed at 1,190.9 won at end-May, up from 1,168.2 won a month earlier.

Local companies increased their foreign currency savings by $17.7 billion to $51.73 billion last month. Foreign currency savings of individuals also gained $640 million to $13.88 billion.

Dollar-denominated deposits came to $55.65 billion as of end-May, up $2.19 billion from April.

Deposits in Japanese yen slightly dropped to $3.87 billion from $3.96 billion over the cited period, the data showed.

By Ram Garikipati and newswires (ram@heraldcorp.com)