Korea's foreign reserves drop in October as strong U.S. dollar takes its toll

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Korea's foreign reserves drop in October as strong U.S. dollar takes its toll

Published: 05 Nov. 2024, 11:48 Updated: 05 Nov. 2024, 13:16

A banker checks dollars at Hana Bank's Counterfeit Notes Response Center in Seoul. [NEWS1]

Korea's foreign reserves fell in October, snapping three consecutive months of rises due to the decreased value of non-U.S. dollar assets amid a strong U.S. dollar and decreased deposits, central bank data showed Tuesday.

The country's foreign reserves came to $415.69 billion as of the end of October, down $4.28 billion from a month earlier, according to data from the Bank of Korea (BOK).

The central bank attributed the fall to a decline in the converted value of non-dollar assets amid the strong greenback and a decline in deposits.

The dollar index that gauges the greenback's value against major peers rose 3.6 percent last month, shedding the converted value of non-dollar assets, 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 $373.25 billion as of the end of October, down $50 million from a month earlier. They accounted for 89.8 percent of foreign reserves, the data showed.

The value of deposits stood at $18.42 billion at the end of October, down $3.86 billion over the cited period.

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

Yonhap