SEOUL, Feb. 4 (Korea Bizwire) — South Korea’s foreign exchange reserves slipped in January from a month earlier as the currency value of the euro and the British pound weakened, data showed Wednesday.
The country’s foreign exchange reserves reached US$362.2 billion as of the end of last month, falling $1.4 billion from December, according to Bank of Korea data.
Foreign reserves consist of securities and deposits denominated in overseas currencies, International Monetary Fund reserve positions, special drawing rights and bullion.
The amount of the foreign exchange reserves set a fresh monthly record from June 2013 until July last year, when the figure declined on a weakening euro and the repayment of foreign exchange stabilization bonds.
In a press release, the central bank explained that the weakening value of the euro and the pound offset management gains, pushing the foreign exchange reserves lower.
As of end-December, South Korea was the world’s seventh-largest holder of foreign reserves, trailing China, Japan, Saudi Arabia, Switzerland, Taiwan and Russia. The comparison for January data is not yet available.