As the won-dollar exchange rate fell more than 250 won in two months to a 23-month low, corporations are clearly showing a stronger inclination to hold dollars.
According to financial sector data on the 6th, on the night of the 4th the won-dollar exchange rate closed at 1,345.0 won in the Seoul foreign exchange market. It was the lowest level since early Oct. 2024, and compared with the 1,599.2 won high on July 1, it was down more than 254 won in just over two months.
In tandem with the drop in the exchange rate, dollar deposits at banks are rising quickly. As of the 3rd, dollar deposits at the five major commercial banks—KB Kookmin, Shinhan, Hana, Woori, and NongHyup—stood at $76.983 billion, the highest since combined statistics for the five banks began in May 2021. After increasing by more than $6.9 billion in August alone, they added more than $600 million in just three days this month.
In particular, growth in corporate deposits stands out. As of the 3rd, corporations' dollar deposits hit a record high of $63.302 billion. It is seen as reflecting corporations delaying conversion of export-earned dollars when the exchange rate is low, while moving to purchase import payment funds in advance and in tranches.
Individual dollar deposits also reached $13.681 billion, the largest in 3 years and 7 months since Feb. 2022. The amount of won sold for dollars reached $389 million in August, the most since January this year, while, conversely, the amount of dollars converted back into won was only about one-third of that.
A similar trend is appearing with the yen. As the won-yen cross rate slid to the 853 won per 100 yen range on the 2nd, the lowest in 2 years and 2 months, yen deposits surged, led by individuals engaging in bargain hunting.
At the five major banks, yen deposits totaled 1.1243 trillion yen as of the 3rd, the highest since late Oct. 2024, and in the first three days of September, the volume of won exchanged into yen reached 6.3 billion yen, rising rapidly to 22% of August's monthly exchange amount.