South Korea's foreign reserves rise by record $14.33 billion in August
Quick Look
South Korea's foreign reserves increased by $14.33 billion in August to $442.28 billion, the largest monthly gain since data collection began in 1971, driven by growth in dollar-denominated assets, foreign currency deposits, and overseas asset values, according to the Bank of Korea.
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Why It Matters
South Korea's foreign reserves had previously peaked at $447.71 billion in May 2022 before declining, with the August increase marking a recovery toward those levels.
SEOUL, Sept. 3 (Yonhap) -- South Korea's foreign reserves rose by the largest amount in August due to an increase in dollar-denominated assets, the central bank said Thursday.
The country's foreign reserves stood at US$442.28 billion as of end-August, up $14.33 billion from a month earlier, according to data from the Bank of Korea (BOK).
The on-month gain marked the largest increase since the BOK began compiling the data in 1971, while the balance marked the highest level since May 2022, when it stood at $447.71 billion.
The BOK attributed the sharp increase to a rise in foreign currency deposits held by financial institutions, as well as an increase in the U.S.-dollar value of overseas assets and management profits.
Foreign securities, including U.S. Treasuries, increased $7.07 billion from a month earlier to $387.07 billion at end-August, accounting for 87.5 percent of the country's total foreign reserves.
The value of foreign currency deposits rose $7.17 billion to $30.3 billion, while special drawing rights (SDRs) rose $60 million to $15.77 billion.
Gold bullion holdings remained unchanged at $4.79 billion.
What to Watch
AI outlook โ possibilities, not facts
South Korea's foreign reserves may continue to grow if dollar asset inflows persist
Possible ยท Within weeks
Open Questions
- What specific financial institutions held the increased foreign currency deposits?
- Whether the reserve growth will continue into September amid global market volatility
