South Korea's foreign reserves dip slightly in May

SEOUL, June 4 (Yonhap) -- South Korea's foreign reserves fell slightly last month amid efforts by authorities to manage exchange rate volatility, the central bank said Thursday.

The country's foreign reserves stood at US$426.99 billion as of end-May, down $880 million from a month earlier, according to data from the Bank of Korea (BOK).

The figure had risen $4.22 billion in April, following a $3.97 billion decline in March, which was the sharpest monthly drop in about a year.

The BOK attributed the on-month decline to authorities' market stabilization measures, such as foreign exchange swaps with the National Pension Service.

The Korean won has traded over the psychologically important level of 1,500 won against the U.S. dollar since May 15 amid prolonged Middle East tensions and net selling of local stocks by foreign investors.

Foreign securities, including U.S. Treasuries, fell by $3.39 billion from a month earlier to $380.68 billion at end-May, accounting for 89.2 percent of the country's total foreign reserves.

The value of foreign currency deposits rose $2.59 billion to $21.35 billion, while special drawing rights (SDRs) rose $30 million to $15.78 billion.

Gold bullion holdings remained unchanged at $4.79 billion.

The country's reserve position with the International Monetary Fund (IMF) decreased by $60 million from a month earlier to $4.4 billion at the end of May, the latest findings showed.

South Korea ranked as the world's 12th-largest holder of foreign reserves as of end-April, down from 10th place a month earlier.

China topped the list, followed by Japan, Switzerland, Russia and India, according to the BOK.