Forex reserves skyrocket as investments pip exchange rate

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Forex reserves skyrocket as investments pip exchange rate

Korea’s foreign exchange reserves rose to a fresh high in October as higher investment profits overshadowed the decreased conversion value of non-dollar assets, the central bank said yesterday.

The country’s foreign reserves reached $323.46 billion in October, up $1.45 billion from the previous month, according to the Bank of Korea (BOK).

Foreign reserves consist of securities and deposits denominated in overseas currencies, along with the International Monetary Fund reserve positions, special drawing rights and gold bullion.

The central bank said growing investment profits offset a marginal fall in the conversion value of non-dollar assets.

In October, the euro appreciated 0.4 percent on-month to the dollar while the yen fell 2.5 percent per the greenback.

Despite some monthly fluctuations, the FX reserves have been on the rise, aided by exports and inflows of foreign capital.

An official at the BOK declined to comment on suspected intervention in the market to curb the won’s gain.

As of end-September, Korea was the world’s seventh-largest holder of foreign exchange reserves.

Yonhap

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