S. Korea's Foreign Currency Deposits Down $4.68bn in October

Foreign currency deposits held by banks in South Korea fell again last month due largely to a decline in US dollar deposits by local conglomerates, central bank data showed Tuesday.

    Outstanding foreign currency deposits totaled US$61.82 billion in October, down $4.68 billion from a month earlier, according to the Bank of Korea (BOK). It marks the second consecutive month of fall in the volume of foreign deposits here, state news agency (Yonhap) reported. 

    Foreign deposits include those held by foreigners who have stayed in South Korea for more than six months, as well as foreign companies here.

    BOK officials attributed the drop to a 3.78-billion dollar reduction in US dollar deposits. The amount of Chinese yuan and Japanese yen deposits also shrank by $510 million and $350 million, respectively.

    "Dollar-denominated deposits decreased a lot due to conglomerates' trade payment settlement and the withdrawal of deposits for the demand for the won," a BOK official said.

    Companies held $50.8 billion in foreign currency deposits, down $ 4.4 billion from September, with those held by individuals dipping $250 million to $10.9 billion.