U.S. dollar deposits increased as the local currency strengthened
Total foreign currency deposits in South Korean banks has increased by $370 million from the previous month to $81.33 billion at the end of March 2018, marking the third largest monthly balance, Yonhap News has reported referring to data from the Bank of Korea (BOK).
The central bank attributed the surge in foreign currency deposits to the increase in dollar-denominated savings. According to data, deposits denominated in U.S. dollars have reached $70.08 billion in March, accounting for 86.2% of all currency funds in banks. Meanwhile, the yen and euro deposits have dropped to $4.71 billion and $3.3 billion, respectively.
According to the central bank, people have been trying to hold their dollar possessions last month as the Korean won strengthened slightly against the U.S. dollar.
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