Continued weakness in the US dollar, impact of increasing foreign currency asset management income
Korea’s foreign exchange reserves have reached a record high for seven consecutive months. This is attributed to the continued weakness in the US dollar and the increase in foreign currency asset management profits.
According to the Bank of Korea on the 6th, the amount of foreign exchange reserves in Korea as of the end of December was $431.3 billion, an increase of $6.72,000 from a month ago.
Foreign exchange reserves increased for the ninth month from April last year to last month, hitting a record high for seven consecutive months since June.
An official from the BOK explained, “The weakening of the US dollar has led to an increase in the conversion of foreign currency assets denominated in other currencies in the US dollar, and an increase in reserves for payment of financial institutions.”
Looking at the trend by asset, securities, which account for 92.5% of the total assets, amounted to $4,098.4 billion, a surge of $15.2 billion during the same period.
The IMF position, which is the right to withdraw exchangeable currency to the International Monetary Fund (IMF), increased by $420 million to $4.82 billion, and the IMF Special Drawing Rights (SDR) increased by $150 million to $3.37 billion. done.
Deposits placed in banks fell from $2.92 billion at the end of November to $22.8 billion at the end of December, the only decline in the total assets.
In the case of gold, the price at the time of purchase was not reflected, so it was $4.79 billion as of the previous month.
Meanwhile, Korea’s foreign exchange reserves were $436.4 billion as of the end of November, ranking 9th in the world. China ($3.17 trillion), Japan ($1,384 trillion), and Switzerland ($1.35 trillion) ranked first and third.
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