Korea's FX Reserves Increased to US$368.1 Billion in 3 Months as of Sept.

Korea's Foreign Exchange Reserves have returned to growth in three months.

According to The Bank of Korea announcement released on Sept. 5, the bank's foreign exchange reserves increased by US$180 million as of late Sept., posting US$368.1 billion, up from US$367.94 billion in Aug.

Beginning in Feb., the amount of exchange reserves had gradually increased and peaked in June, posting US$374.75 billion then. July and Aug. saw a decline in the amount due to the impact of exchange rate fluctuations, but returned to growth in Sept. According to the Bank of Korea, the growth is related to an increase in the interest rate that derives from the interest in foreign assets, including deposits and securities.

By the type of asset, the value of securities (government bonds, corporate bonds, asset-backed securities, etc.) posted US$334.34 billion compared to the previous month, declining by US$1.77 billion. SDR, the amount of the IMF’s Special Drawing, posted US$3.46 billion, decreasing by US$20 million.

On the other hand, deposits posted US$24.08 billion, increasing by US$2.04 billion. As for gold, the bank has to record the amount at the time of purchase. Therefore, the value remains the same as it was in Aug., posting US$4.79 billion.

As of Aug., in terms of Foreign Exchange Reserves Korea fell to 7th from 6th, surpassed by Brazil. China topped the rankings, posting US$3.5574 trillion, followed by Japan at US$1.2442 trillion, Saudi Arabia at US$668.8 billion, Switzerland at US$603.8 billion, Taiwan at US$424.8 billion, and Brazil at US$368.2 billion.