Korea's foreign reserves up for 3rd month in August amid weak dollar

Korea's foreign reserves rose for the third consecutive month in August, led by the increased value of non-U.S. dollar assets and increased investment returns, the central bank said Tuesday.

The country's foreign reserves stood at $416.29 billion as of end-August, up $4.95 billion from a month earlier, according to the data from the Bank of Korea (BOK).

The end-August tally marks the highest since September 2024, when the figure stood at $419.97 billion.

The central bank said an increase in the value of non-dollar assets due to a weakening of the greenback, along with a rise in investment returns, helped jack up foreign reserves. The dollar index fell 2 percent last month.

Foreign securities, such as U.S. Treasurys, were valued at $366.1 billion as of end-August, accounting for 88 percent of foreign reserves.

The value of foreign currency deposits amounted to $25 billion, while special drawing rights (SDRs) came in at $15.78 billion. Gold bullion remained unchanged at $4.79 billion.

The country's International Monetary Fund (IMF) reserve positions gained 1.12 percent from a month earlier to $4.54 billion at end-August, the data showed.

Korea ranked as the world's 10th-largest holder of foreign reserves at end-July.

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

Yonhap