South Korea’s foreign reserves declined for a second consecutive month in February as the decreased conversion value of non-dollar assets offset increased investment profit, central bank data showed Wednesday.
The country’s foreign reserves had come to US$415.73 billion as of end-February, down $30 million from the previous month, following a $4.39 billion decline in December, according to the data from the Bank of Korea (BOK).
The dollar’s ascent last month lowered the converted value of holdings denominated in other currencies, undercutting a rise in investment gains, the BOK explained.
The dollar index that gauges the greenback’s value against major peers rose 0.6 percent last month, the central bank said.
Foreign reserves consist of securities and deposits denominated in overseas currencies, International Monetary Fund reserve positions, special drawing rights and gold bullion.
Foreign securities, such as U.S. Treasuries, had been valued at $369.52 billion as of end-February, up $830 million from a
month earlier. They accounted for 88.9 percent of foreign reserves, the data showed.
The value of deposits stood at $21.81 billion at the end of February, down $970 million from a month earlier.
South Korea ranked as the world’s ninth-largest holder of foreign reserves at the end of January, the BOK said.
Source: Yonhap News Agency
