Banks' foreign currency deposits down in March amid strong US dollar

Foreign currency deposits at banks in South Korea fell in March as South Korean companies withdrew US dollars for their planned overseas investments and individuals sold their dollars for profit-taking, central bank data showed Tuesday.

Outstanding foreign currency deposits held by banks in South Korea reached $92.71 billion as of end-March, down $5.43 billion from a month ago, according to the data compiled by the Bank of Korea (BOK).

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

The decline came as the US currency gained ground against the Korean Won.

The South Korean currency traded at a daily average of 1,221.3 won in March against the US dollar, compared with 1,197.8 won in February.

By currency, deposits in US dollars fell to $78.55 billion as of end-March from $83.43 billion as of end-February. Euro-denominated deposits decreased $560 million to $5.05 billion as of end-March, the data showed.

By holder, companies held $76.34 billion in foreign currency deposits as of end-March, down from $80.81 billion as of end of February. Deposits held by individuals dropped $960 million to $16.37 billion. (Yonhap)