Foreign currency deposits up for 2nd straight month in June

Foreign currency deposits increased for the second consecutive month in June, with Japanese yen deposits posting a record-high monthly increase, central bank data showed Monday.

Residents’ outstanding foreign currency-denominated deposits reached US$99.83 billion at end-June, up $3.04 billion from the previous month, according to the data from the Bank of Korea (BOK).

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

By currency, Japanese yen-denominated deposits rose by a record $1.23 billion to $7.48 billion last month.

The central bank said the steep rise in Japanese currency deposits was led by increased demand for the weakening yen.

Last month, the yen fell against the Korean won to the 800 won range per 100 yen, the lowest in eight years, as Tokyo kept ultralow rates despite global monetary tightening.

Dollar-denominated deposits increased by $1.15 billion, euro-denominated deposits rose by $350 million, and Chinese yuan-denominated deposits rose by $320 million on-month.

According to the BOK data, corporate deposits came to $85.18 billion as of June, up $2.51 billion from the previous month, with individual holdings rising by $530 million to $14.65 billion.