Korean Residents FX Savings Hit Record High

Residents' foreign currency savings in South Korea reached an all-time high in September as exporters'

earnings shot up, the central bank said Wednesday.

According to the Bank of Korea, foreign currency deposits by residents amounted to $23.08 billion as of the end of September, up $2.35 billion from the preceding month. It was the sharpest monthly growth since July 2005 when the savings surged $2.97 billion.

"While withdrawals to cover import bills were smaller than usual, exporters' deposits were markedly larger than other months," said Park Jae-jin, a central bank official.

In recent months, businesses have shown a tendency to increase foreign currency savings when the won strengthens against the U.S. dollar, while reducing them amid a weaker currency, Park said.

The won gained 2.5 percent to the greenback in September from a month ago, with the average exchange rate reaching 915.1 won to the dollar.

As of the end of September, companies held 84.3 percent of the deposits worth $19.46 billion, up $2.18 billion from August. Individuals' foreign currency holdings totaled $3.62 billion, up $170 million from the preceding month.

Dollar deposits grew $1.84 billion on-month to $18.81 billion last month, which accounted for 81.5 percent of the entire foreign currency savings. Japanese yen deposits climbed $80 million to $2.49 billion, with euro deposits gaining $360 million to $1.38 billion, the central bank said.