Foreign currency deposits at South Korean banks fell for the second straight month in December as local firms withdrew money to cover import bills, the central bank said Tuesday.

Outstanding foreign currency-denominated deposits held by local residents reached $36.03 billion as of the end of December, down $2.35 billion from the previous month, according to the Bank of Korea.

The December data marked the lowest level since August when such deposits hit $35.83 billion, it added. In October, the deposits hit a record high of $39.39 billion.

Residents include individual citizens and firms but not foreign nationals with residency status. The data also excludes inter-bank foreign currency deposits.

Companies’ holdings of FX deposits fell $2.34 billion on-month to $32.04 billion while such deposits held by individuals inched down $10 million to $3.99 billion, the central bank added.

In December, the local currency appreciated 1.3 percent to the dollar, compared with the previous year.

In June last year, the government unveiled plans to encourage local banks to secure more foreign currency deposits in a bid to build a safety net from external shocks. (Yonhap News)