An employee organizes dollars at the counterfeit countermeasures center at Hana Bank’s headquarters in central Seoul. (Yonhap)
SEOUL, Jan. 4 (Korea Bizwire) – South Korea’s foreign reserves increased for the second straight month in December on the back of the increased conversion value of non-dollar assets and a rise in deposits, central bank data showed Thursday.
The country’s foreign reserves had come to US$420.15 billion as of end-December, up $3.07 billion from the previous month, according to the data from the Bank of Korea (BOK).
The dollar’s descent last month boosted the converted value of holdings denominated in other currencies, and investment returns increased, the BOK explained.
The dollar index that gauges the greenback’s value against major peers dropped 1.5 percent last month, 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, had been valued at $373.67 billion as of end-December, up $1.6 billion from a month earlier. They accounted for 88.9 percent of foreign reserves, the data showed.
The value of deposits stood at $21.98 billion at the end of December, up $1.38 billion from a month earlier.
South Korea ranked as the world’s ninth-largest holder of foreign reserves at the end of November, the BOK said.
(Yonhap)
