BOK “Increasing number of companies withholding sales due to the recent exchange rate rise”
As foreign currency deposits by import and export companies waiting for the time to exchange payment amount increased significantly, foreign currency deposits for residents increased for the first time in three months last month.
According to the trend of resident foreign currency deposits announced by the Bank of Korea on the 22nd, as of the end of last month, the balance of resident foreign currency deposits at foreign exchange banks stood at $89.17 billion, an increase of $2.18 billion from the end of the previous month.
After a continuous decline in March (-5.43 billion USD) and April (-5.72 billion USD), it turned to an upward trend last month.
Resident foreign currency deposits refer to domestic foreign currency deposits for Koreans and domestic companies, foreigners who have lived in Korea for more than 6 months, and foreign companies that have entered the country.
By entity, new corporate deposits ($73.91 billion) increased by $2.26 billion in one month.
In March and April, it decreased by $9.16 billion, but rose in three months.
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Personal deposits ($15.26 billion) declined by $80 million, led by the dollar, as the tendency to sell increased during the exchange rate rise period.
Personal deposits have been declining for five consecutive months since January of this year.
By currency, deposits in dollars ($75.35 billion) and deposits in euros ($5.13 billion) increased by $2.17 billion and $120 million, respectively.
It is explained that dollar-denominated deposits increased due to the increase in deposits for export and import settlements led by companies, while Euro-denominated deposits increased due to the recovery of margins related to overseas derivative transactions by some securities companies.
Regarding the background of the increase in deposits, a BOK official explained, “It seems that the number of companies holding off on selling has increased because the won/dollar exchange rate has been maintained at a high level recently.”
On the other hand, deposits in Japanese yen (US$5.48 billion) decreased by US$180 million and those in Chinese yuan (US$1.48 billion) decreased by US$80 million.
The daily average won/dollar exchange rate rose 33.3 won from 1,235.1 won in April to 1268.4 won in May.
/yunhap news
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