Decrease in corporate deposits leads to a reduction in both domestic and foreign exchange deposits, while individual US dollar deposits increase.

Foreign currency deposits by domestic residents decreased after three months due to a decline in corporate deposits, while individual dollar deposits increased influenced by the decline in the Korean won/US dollar exchange rate. Data released by the Bank of Korea shows that as of the end of January this year, the resident foreign currency deposit balance at foreign exchange banks was $118.03 billion, down $1.4 billion from the previous month.

The decrease in resident foreign currency deposits (including deposits by local residents, domestic companies, and long-term foreign residents) was mainly due to a significant drop in corporate deposits. Corporate deposits decreased by $1.82 billion, while individual deposits increased by $420 million. The rise in individual deposits was affected by the decline in the won/US dollar exchange rate. US dollar deposits totaled $96.34 billion, with individual deposits accounting for $14.4 billion.

In terms of currency types, dollar deposits hit a record high and continued to grow, while yen deposits also increased due to corporate fund receipts and securities company deposits. Conversely, euro deposits decreased by $2.36 billion due to regular payments. These changes in foreign exchange deposits appear to result from the combined effects of economic activity patterns of individuals and businesses and fluctuations in the foreign exchange market.

The future of the foreign exchange market will be difficult to predict based on domestic economic conditions and international financial trends, but fluctuations in the won/US dollar exchange rate and the value of various currencies are expected to continue influencing foreign currency deposits. Experts emphasize the need to respond sensitively to such volatility.