Korea's Foreign Currency Deposits Reach Record High in July

Foreign currency deposits in South Korea reached an all-time high of $128.34 billion in July, driven by a sharp increase in dollar savings. The Bank of Korea reported that this figure marks the largest on-month gain and highest balance since June 2012.

The rise was primarily attributed to increased dollar receipts from exporting companies and funds held by local brokerages for investments in foreign bonds.

Currency-wise, U.S. dollar-denominated reserves saw a significant increase of $11.12 billion to reach $108.92 billion, the largest on-month gain since June 2012. Euro-denominated savings also rose by $2.22 billion to $8.06 billion, while Japanese yen deposits increased by $1.5 billion to $8.61 billion.

Corporate foreign currency deposits rose by $13.57 billion to $112.56 billion, and individual holdings increased by $1.44 billion to $15.77 billion.