US dollar deposits at South Korean banks rise amidst outbreak

Outstanding dollar deposits at five local banks have reached $47b.

US dollar-denominated deposits at South Korean banks have risen nearly 30% since February, when the country’s coronavirus cases sharply rose, reports Yonhap.

Outstanding dollar deposits at five local banks reached $47b as of 11 June, industry data showed. This is 28% higher from the $36.6b recorded at the end of February.

A rise in the foreign currency deposits came as investors betted on a stronger US dollar amidst pandemic-caused economic uncertainties, the report noted. So far, the Korean won has dropped nearly 4% against the dollar.

Demand for the dollar deposits continues to rise, jumping $6.6b in March compared to the previous month.