An official checks banknotes at a financial institution department of Hana Financial institution in central Seoul, Nov. 5. Yonhap
Greenback deposits by firms at native banks rose on the quickest tempo of the 12 months in November as corporations accelerated efforts to extend their greenback holdings amid a strengthening U.S. greenback, trade knowledge confirmed Sunday.
Firms’ excellent greenback deposits at 5 main business banks, together with KB Kookmin Financial institution and Shinhan Financial institution, reached $53.7 billion as of Thursday, up 21 p.c from $44.3 billion a month earlier, in line with the info.
The rise marks the biggest month-to-month acquire in 2025.
Greenback deposits are monetary merchandise through which received is transformed into {dollars} and deposited, then withdrawn or transformed again into received upon maturity.
Sometimes, when the greenback strengthens, traders have a tendency to understand earnings, resulting in a decline in greenback deposit balances.
Nonetheless, greenback deposits rose in November regardless of the stronger U.S. greenback.
Insiders mentioned firms expanded their greenback holdings amid rising U.S. funding and heightened overseas trade market uncertainties.
“Following U.S. President Donald Trump’s election final December, company forex trade transactions and greenback deposit balances hit file highs,” an official at an area financial institution mentioned. “This month noticed the biggest improve to this point this 12 months.”
Particular person traders have additionally elevated their greenback deposits.
Their excellent greenback deposits reached $12.2 billion as of Thursday, marking the fourth consecutive month-to-month rise since August.
Rising funding in abroad inventory markets and expectations of a stronger greenback have fueled demand amongst particular person traders.
“Amid current volatility within the overseas trade market, there’s a pattern, significantly amongst firms, to extend overseas forex holdings,” a separate business financial institution official mentioned.
The Korean received has sharply depreciated in opposition to the U.S. greenback in current months regardless of authorities’ repeated verbal interventions, sliding from round 1,390 received per greenback on Sept. 1 to about 1,470 received on Friday.
