Foreign currency deposits rise for 2nd month in Jan. amid uncertainty

Foreign currency deposits rose for a second consecutive month in January as companies secured more dollar holdings amid heightened uncertainties, the central bank said Monday.

Outstanding foreign currency-denominated deposits held by residents came to US$103.44 billion as of end-January, up $2.14 billion from a month earlier, according to the data from the Bank of Korea (BOK).

It marked the second straight month of increase, following the first on-month rise in three months in December.

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

The growth came as companies secured a larger amount of fund deposits for import settlements, investment and other purposes while navigating uncertainties at home and abroad, officials said.

South Korea has experienced political chaos after President Yoon Suk Yeol’s shocking martial law declaration on Dec. 3, 2024, while the country is bracing for the impact of U.S. President Donald Trump’s new tariff scheme and other protectionist measures.

Corporate deposits amounted to $89.2 billion as of end-January, up $2.08 billion from the previous month, while individual holdings rose by $60 million to $14.24 billion.

By currency, dollar-denominated deposits rose by $1.88 billion to $88.31 billion, and Japanese yen-denominated deposits climbed $110 million to $8.29 billion. Euro-denominated deposits gained $80 million to $4.45 billion.

The Korean won fell to 1,455.79 won per U.S. dollar in January from the previous month’s 1,434.42 won. From a year earlier, the won sank 10 percent.