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The won-to-dollar exchange rate has fallen to its lowest point in nearly two years, and South Korean companies have been raising their dollar-denominated deposit holdings in tandem.
The pairing is not coincidental: currency depreciation shifts the cash management calculus for any corporate treasury running dollar-exposed costs. A near two-year low is a meaningful threshold.
It marks the kind of persistent weakness that moves from a short-term fluctuation into a planning assumption, the level at which companies stop watching and start repositioning.
Dollar deposits are a direct vehicle for that repositioning. They sit liquid on the asset side of the balance sheet, denominated in the currency that has appreciated against the won.
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