Foreign reserves rise to $427.95 billion in July

Foreign reserves rose for the second consecutive month in July due to the issuance of foreign exchange stabilization bonds, the central bank said on Wednesday.

Korea’s foreign reserves stood at $427.95 billion as of the end of 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 following market stabilization measures.

Foreign securities, including U.S. Treasurys, fell by $340 million from a month earlier to $380.01 billion at the end of 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, and special drawing rights 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 increased by $10 million from a month earlier to $4.32 billion at the end of July, the latest findings showed.

Korea ranked as the world’s 10th largest holder of foreign reserves as of the end of June, up from 13th place a month earlier.

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

Yonhap