Foreign reserves rebound as investment gains offset forex losses

Home > Business > Finance

Foreign reserves rebound as investment gains offset forex losses

Published: 03 Apr. 2024, 19:04

SARAH CHEA
[email protected]

Korea's foreign reserves rebounded last month after two straight months of decline as investment gains offset the decreased conversion value of non-dollar assets, central bank data showed Wednesday.

The country's foreign reserves came to $419.25 billion as of end-March, up $3.51 billion from the previous month, according to the Bank of Korea (BOK).

The central bank said gains from investments and deposits increased, offsetting a fall in the converted value of holdings denominated in other currencies.

The dollar index gauging 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, were valued at $364.89 billion as of the end of March, down $4.63 billion from a month earlier. They accounted for 87 percent of foreign reserves, the data showed.

The value of deposits stood at $30.53 billion at the end of February, up $8.73 billion over the cited period.

Korea ranked as the world's ninth-largest holder of foreign reserves at the end of February, the BOK said.