SEOUL: Foreign currency deposits at banks in South Korea dropped sharply in May from a month earlier on a large decline in dollar-denominated deposits, central bank data showed Monday. Outstanding foreign currency deposits held by local residents came to US$56.85 billion as of end-May, down $5.19 billion from a month earlier, according to the data from the Bank of Korea (BOK).
The May tally also marks the lowest level in three months. The drop was largely attributed to a cut in U.S. dollar deposits. “Dollar deposits dropped by a large margin partly because public firms withdrew large amounts to pay back their maturing debts,” the BOK said in a press release.
Dollar-denominated deposits came to $46.9 billion as of the end of May, down 9.2 percent or $4.78 billion from the previous month. The dollar value of deposits held in Chinese yuan also plunged to $1.61 billion from $2.46 billion over the cited period, according to the central bank. By holder, foreign currency deposits held by companies came to $49.09 billion as of end-May, down $4.82 billion from a month earlier. Those held by individuals slipped $370 million to $7.76 billion over the cited period.
