Foreign currency deposits rise for 3rd month in June

An employee sorts dollar bills at Hana Bank's Counterfeit Notes Response Center in Seoul, July 3. Yonhap

Foreign currency deposits in Korea rose for the third consecutive month in June on increased dollar savings, central bank data showed Monday.

Outstanding foreign currency-denominated deposits held by residents stood at $113.33 billion at the end of June, up $1.08 billion from a month earlier, according to data from the Bank of Korea (BOK).

The reading has been rising since April.

Residents include Korean citizens, foreigners who have lived in the country for more than six months and foreign companies. The data excludes interbank deposits.

By currency, U.S. dollar-denominated deposits increased $2.25 billion to $97.8 billion, rising for the third consecutive month.

Euro-denominated deposits dropped $460 million to $5.84 billion, while Japanese yen deposits fell also $410 million to $7.12 billion.

Corporate foreign currency deposits rose $1.58 billion to $98.99 billion, while individual holdings declined $500 million to $14.33 billion.

The BOK attributed the increase in dollar deposits to higher basic deposits required for derivatives trading amid stock market volatility, as well as increased dollar receipts by exporting companies.