Foreign exchange reserves increase
The nation’s foreign reserves reached $371.4 billion, up 0.4 percent, or nearly $1.5 billion, over the previous month, the Bank of Korea said Wednesday.
In July, foreign-denominated securities, which account for more than 90 percent of foreign exchange reserves, grew 0.4 percent or $1.35 billion to $336.8 billion over the previous month. Foreign currency accounts, which account for 6.8 percent of the foreign reserves, added $140 million to reach $25.4 billion.
The country’s reserve position at the International Monetary Fund was the only one that shrank, declining $10 million to $1.8 billion.
Korea’s foreign reserve shrank for four consecutive months between November 2015 and February before bouncing back in March. However, it retreated in May as the depreciation of the U.S. dollar affected the BOK’s yen- and euro-based foreign assets. Brexit, which shook the global market, also sent reserves down.
BY LEE HO-JEONG [firstname.lastname@example.org]