Foreign currency deposits rebound in October

Foreign currency-denominated deposits at banks in South Korea recovered in October after falling the most in over four years a month earlier, central bank data showed Friday.

Foreign currency deposits held by residents reached $66.4 billion as of the end of October, up $2.7 billion from the previous month, according to the Bank of Korea.

Residents include local citizens, foreign companies and foreigners staying here for more than six months. The data excludes inter-bank foreign currency deposits.

In September, the figure slumped by $4.9 billion as deposits in major currencies, excluding the Chinese yuan, shrank, marking the fastest monthly decline since $4 billion in May 2010.

Yuan-denominated deposits continued to rise in October, adding $1.4 billion over the month to $21.7 billion to account for 32.7 percent of all foreign currency deposits.

Dollar-denominated deposits also rose $1.2 billion to $38.4 billion after plunging $4.9 billion in the previous month.

The central bank credited the increase to companies’ growing demand for trade transactions and foreign securities issuances.

Deposits in the euro and the Japanese yen both reached $2.5 billion, slightly gaining from September, according to the data. (Yonhap)