Banks' foreign currency deposits hit fresh record high in September

Foreign currency deposits at South Korean banks rose to a fresh record high in September as large companies logged higher export earnings, the central bank said Friday. Outstanding foreign currency-denominated deposits held by local residents reached US$42.44 billion as of end-September, up $1.42 billion from the previous month, according to the Bank of Korea (BOK). Residents include local citizens, foreigners staying here for more than six months and foreign companies. The data excludes inter-bank foreign currency deposits. Companies' holdings of FX deposits rose $950 million on-month to $37.51 billion, while such deposits held by individuals gained $470 million to $4.93 billion, it added. In June last year, the government unveiled plans to encourage local banks to secure more foreign currency deposits in a bid to protect against external shocks.