ID :
187355
Thu, 06/09/2011 - 04:27
Auther :
Shortlink :
https://oananews.org//node/187355
The shortlink copeid
Strong won curbs foreign currency deposits
SEOUL (Yonhap) - The South Korean won's appreciation against the U.S. dollar is prompting more companies to withdraw foreign currency deposits on concerns about foreign exchange losses, data showed Thursday.
Foreign currency deposits at six local banks, including Kookmin Bank, reached US$22 billion as of the end of last month, down $1.37 billion from April, according to the industry data.
The deposits declined for the second consecutive month in May after rebounding in March when the local currency fell an average of 0.08 percent to the dollar from the previous month.
Market watchers said the fall came mainly because more companies tried to sell the greenback after withdrawing part of their foreign currency deposits, as the won's gain reduces the conversion value of dollar holdings.
The Korean currency has risen about 5 percent to the greenback so far this year amid robust exports and sustained inflows of foreign stock and bond funds.
In contrast, more corporate clients took out foreign currency in May, the data showed. Foreign currency loans extended by the six lenders came to $18.2 billion as of end-May, up $455 million from the previous month.
Foreign currency deposits at six local banks, including Kookmin Bank, reached US$22 billion as of the end of last month, down $1.37 billion from April, according to the industry data.
The deposits declined for the second consecutive month in May after rebounding in March when the local currency fell an average of 0.08 percent to the dollar from the previous month.
Market watchers said the fall came mainly because more companies tried to sell the greenback after withdrawing part of their foreign currency deposits, as the won's gain reduces the conversion value of dollar holdings.
The Korean currency has risen about 5 percent to the greenback so far this year amid robust exports and sustained inflows of foreign stock and bond funds.
In contrast, more corporate clients took out foreign currency in May, the data showed. Foreign currency loans extended by the six lenders came to $18.2 billion as of end-May, up $455 million from the previous month.
