South Korea's Foreign Reserves Rise for Second Consecutive Month in July
Foreign reserves reached $427.95 billion as of end-July, driven by foreign exchange stabilization bond issuance.
Quick Look
South Korea's foreign reserves increased by $590 million to $427.95 billion in July, marking the second consecutive monthly gain, driven by foreign exchange stabilization bonds and rising foreign currency deposits.
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Why It Matters
South Korea's foreign reserves grew in July following a $370 million gain in June.
SEOUL, Aug. 5 (Yonhap) -- South Korea's foreign reserves rose for the second consecutive month in July due to issuance of foreign exchange stabilization bonds, the central bank said Wednesday.
The country's foreign reserves stood at US$427.95 billion as of end-July, up $590 million from a month earlier, according to data from the Bank of Korea (BOK).
The reading followed a $370 million on-month gain in June.
The BOK attributed the monthly increase to issuance of foreign exchange stabilization bonds and a rise in the U.S.-denominated value of foreign currency deposits amid market stabilization measures.
Foreign securities, including U.S. Treasuries, fell by $340 million from a month earlier to $380.01 billion at end-July, accounting for 88.8 percent of the country's total foreign reserves.
The value of foreign currency deposits rose $860 million to $23.13 billion, while special drawing rights (SDRs) rose $60 million to $15.7 billion.
Gold bullion holdings remained unchanged at $4.79 billion.
The country's reserve position with the International Monetary Fund (IMF) increased by $10 million from a month earlier to $4.32 billion at the end of July, the latest findings showed.
South Korea ranked as the world's 10th-largest holder of foreign reserves as of end-June, up from 13th place a month earlier.
China topped the list, followed by Japan, Switzerland, Russia and India, according to the BOK.
Open Questions
- What is the future outlook for foreign reserve growth in upcoming months?
