Foreign currency deposits rise most in 5 months

SEOUL, Jan. 9 (Yonhap) -- Foreign currency savings of residents in South Korea in
December rose by the most in five months as companies withdrew less money to
settle import bills amid falling imports, the central bank said Friday.

The outstanding balance of foreign currency deposits by residents amounted to
US$26.39 billion as of the end of December, up $4.24 billion from a month
earlier, according to the Bank of Korea (BOK). December's figure marked the
largest monthly gain since July 2008, when such savings climbed by $5.08 billion,
it added.
"Foreign currency deposits gained in December as importers withdrew less money.
Although overseas shipments fell, exporters put their dollar earnings into
deposits without selling the greenback as the won gained ground last month," a
BOK official said.
South Korean exports, which account for about 60 percent of the country's
economy, tumbled 17.4 percent in December from a year earlier after falling 19
percent the previous month, as demand for Korean products slumped amid the global
recession.
The local currency declined 25.7 percent to the U.S. dollar last year alone, but
in December, the won rose 16.6 percent from the previous month.
U.S. dollar deposits gained by $3.23 billion to $21.81 billion and Japanese
yen-denominated savings rose $390 million to $2.25 billion. Euro savings climbed
by $580 million to $1.94 billion, the BOK added.
sooyeon@yna.co.kr
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