SEOUL, July 23 (Korea Bizwire) — Foreign currency deposits at banks in South Korea shrank in June as importers paid bills and individuals sold the greenback amid a strong dollar, data showed on Friday.
Residents’ outstanding foreign currency-denominated deposits had reached US$87.06 billion as of end-June, down $2.11 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 fall in the June foreign currency deposits came as companies withdrew dollar holdings to make overseas investments and pay import bills.
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 $1.34 billion on-month to $72.57 billion in June, with deposits by individuals also shrinking $770 million to $14.49 billion over the cited period, the data showed.
Dollar-denominated deposits had come to $73.61 billion as of end-June, down $1.74 billion from a month earlier. Euro-denominated deposits also declined $500 million to $4.63 billion over the cited period, according to the data.
The U.S. dollar averaged 1,280.8 against the Korean won last month, up 12.4 won from the previous month.