Foreign currency-denominated deposits at five South Korean lenders more than doubled from a year ago to $20 billion in February on the back of the local currency‘s ascent against the U.S. dollar, financial industry sources said Friday.
According to local sources, the outstanding deposits at five commercial lenders -- Kookmin Bank, Woori Bank, Shinhan Bank, Hana Bank and the state-run Industrial Bank of Korea -- reached $20.36 billion, up 3.2 percent from January.
The figure was a 65 percent surge from the $12.34 billion held by these banks a year earlier.
The surge was driven by the depreciations of the U.S. dollar against the Korean unit and also the fall of the Japanese yen against the U.S. dollar, which triggered purchases of foreign currencies by local firms.
The on-going crisis in Europe and rising oil prices that may prompt financial turmoil also drove Korean corporations to stock up on foreign currency on expectations that the won could weaken once the financial unrest dissipates.
Foreign currency-denominated loans declined moderately from the previous month in February. Outstanding foreign currency loans stood at $14.26 billion as of the end of last month, down 3.2 percent from the end of January.
(Yonhap News)
