South Korea’s foreign currency deposits grow

August 7th, 2012 - 2:01 pm ICT by IANS  

Seoul, Aug 7 (IANS) South Korea’s foreign currency retail deposits grew $3.31 billion last month as more export proceeds were deposited in the foreign currency accounts amid a continued trade surplus, the central bank said Tuesday.

Foreign currency retail deposits held by domestic banks and local branches of foreign banks reached $36.79 billion as of the end of July, up $3.31 billion from a month earlier, according to the Bank of Korea (BOK).

For local lenders, retail deposits denominated in foreign currencies stood at $35.32 billion, or 96 percent of the total, as of end-July, up $3.57 billion from the previous month, reported Xinhua.

The growth came as local companies increased their deposit of export proceeds into the foreign currency accounts amid continued trade surplus, the central bank said. The nation’s trade surplus amounted to $2.7 billion in July, staying in the black for six straight months.

The increase in depositing of funds secured through foreign currency-denominated bonds also contributed to the July expansion, according to the BOK.

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