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Foreign currency deposits down for 2nd month in April

May 23, 2022 - 13:48 By Yonhap
This file photo shows a Hana Bank official in Seoul inspecting US banknotes before their release into the local financial market. (Yonhap)

Foreign currency deposits at banks in South Korea shrank for the second straight month in April due in part to companies' increased withdrawals to pay for investments and imports, central bank data showed Monday.

Residents' outstanding foreign currency-denominated deposits had reached $86.99 billion as of end-April, down $5.72 billion from the previous month, according to the data from the Bank of Korea (BOK).

Residents include local citizens, companies, foreigners staying here for more than six months and foreign firms. The data excludes interbank foreign currency deposits.

The April shrinkage came as companies withdrew dollar holdings to make overseas investments and pay for imports. Individuals also curtailed dollar deposits to lock in profits from the greenback's recent ascent against the local currency, the BOK said.

Companies' foreign currency deposits fell $4.69 billion on-month to $71.65 billion in April, with deposits by individuals also shrinking $1.03 billion to $15.34 billion over the cited period, the data showed.

Dollar-denominated deposits had come to $73.18 billion as of end-April, down $5.37 billion from a month earlier. Euro-denominated deposits also declined $40 million to $5.01 billion, according to the data. (Yonhap)