Foreign exchange bank deposits in South Korea rose for a third month and reached a 16-month high in August, central bank data showed on Monday, as dollar deposits for investment purposes continued to increase.
Total foreign exchange deposits climbed $1.11 billion from the previous month to $67.34 billion at end-August, the Bank of Korea said, posting the biggest balance since April 2015.
Dollar deposits rose $1.18 billion to $56.92 billion, hitting a record high, while deposits in the euro and the yuan fell.
Of the increase in dollar deposits, $810 million was added to individuals’ savings accounts, reflecting the dollar-buying opportunity created by the 3.6 percent gain in the won against the dollar since July.
Dollar holdings accounted for 84.5 percent of all foreign exchange deposits among South Korean residents last month. Deposits of euro and the yuan were 4.6 percent and 2.8 percent respectively.