In July, the foreign currency deposits of residents decreased by $1.29 billion, centered around Chinese yuan and corporate deposits, marking the first decline in three months.
According to the 'Trends in Resident Foreign Currency Deposits for July' announced by the Bank of Korea on the 27th, the balance of foreign currency deposits held by residents at foreign exchange banks was $105.15 billion at the end of last month, down $1.29 billion from the previous month. After increasing in May and June, it declined last month.
Foreign currency deposits of residents refer to the deposits held by Korean nationals, domestic corporations, foreigners who have resided in Korea for more than six months, and foreign corporations that have entered the domestic market.
By currency type, dollar deposits recorded a decrease of $420 million, totaling $88.72 billion, while euro deposits fell by $140 million to $5.07 billion. Yuan deposits decreased by $890 million, reaching $1.19 billion.
A Bank of Korea official noted, 'The decline in yuan deposits was due to withdrawals of dividends received from the overseas branches of some corporations and payments for current transactions.' The official added, 'Dollar deposits decreased due to overseas investment executions by pension funds, and euro deposits fell due to payments for current transactions by some corporations.'
By entity type, corporate deposits ($90.42 billion) fell by $1.25 billion, while individual deposits ($14.73 billion) decreased by $40 million. By bank type, domestic banks ($89.29 billion) saw a decrease of $2.69 billion, however, foreign bank branches (with a balance of $15.86 billion) increased by $1.4 billion.