South Korea’s foreign reserves rose for the third consecutive month in September, driven by the appreciation of non-U.S. dollar assets and investment returns, according to a report from Yonhap News Agency that references data from the central bank.
As of the end of September, the nation’s foreign reserves totaled approximately $419.97 billion, reflecting an increase of $4.05 billion from the previous month, as reported by the Bank of Korea (BOK).
The BOK noted that this rise was primarily due to the enhanced value of non-dollar assets, influenced by the weakening of the U.S. dollar and gains from investments.
The dollar index, which measures the dollar’s strength against major currencies, dipped by 0.9 percent last month, contributing to the increased value of non-dollar assets, the central bank explained.
Foreign reserves include securities and deposits in foreign currencies, positions in International Monetary Fund reserves, special drawing rights, and gold bullion.
Valuation of foreign securities
As of the end of September, foreign securities, including U.S. Treasuries, were valued at $373.3 billion, marking an increase of $3.86 billion from the previous month. Moreover, these securities represented 88.9 percent of the total foreign reserves.
Additionally, the value of deposits reached $22.28 billion at the end of September, an increase of $240 million during the same period.
Furthermore, South Korea was ranked as the ninth-largest holder of foreign reserves globally as of the end of August, according to the BOK.
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