Foreign reserves snap out of slump and rise
According to the Bank of Korea on Tuesday, foreign reserve holdings as of December were $363.6 billion. That’s a $500 million increase from the previous month, or 0.14 percent.
When compared to a year ago the foreign reserves were $1.7 million larger, or 5 percent.
The nation’s foreign reserves enjoyed a 13-month string of broken records that ended in August. After hitting an all-time high of $368 billion in July, reserves turned around in August and fell through November. The central bank said the foreign reserve fell largely because the value of other currencies in its portfolio, including the euro and British pound, saw their values fall against the U.S. greenback.
In the case of treasury investments, profits rose thanks to the drop in interest rates in the global market.
Securities holdings added $101.4 trillion from the previous month to total $341.7 billion, while cash deposits were reduced by $9.3 billion to under $12 billion.
As of November, Korea had the seventh-largest foreign reserves in the world. The top position is taken up by China’s $3.89 trillion.
BY LEE HO-JEONG [firstname.lastname@example.org]