The record high for 7 consecutive months due to the impact of the exchange rate decline
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At the end of last year, Korea’s foreign exchange reserves reached $431.3 billion, the largest increase since the financial crisis. It is a record high for the seventh consecutive month, with an increase of $6.7 billion in one month due to the fall of the exchange rate.
According to the’exchange reserves at the end of December 2020′ announced by the Bank of Korea on the 6th, Korea’s foreign exchange reserves as of December last year were $431.3 billion, an increase of $6.72 billion from the previous month. The foreign exchange reserves, which fell sharply after the novel coronavirus infection (Corona 19), has set a record-high monthly record for 7 months since last June.
Last year, the annual increase in foreign exchange reserves was $3.28 billion, the highest level in 11 years since 2009 ($68.77 billion), when the financial crisis occurred. This is due to the increase in the amount of other currencies converted due to the fall in the won-dollar exchange rate. At the end of last year, the dollar index (DXY) against six major currencies was 89.68, down 7.3% from the end of 2019 (96.74). In addition to the BOK, it explained that the amount of foreign exchange reserves increased due to an increase in reserve deposits of financial institutions and an increase in foreign currency asset management profits.
As of December last year, securities such as government bonds and local bonds amounted to $49.84 billion, accounting for 92.5% of foreign exchange reserves. An increase of $2.82 billion from the previous year. Deposits amounted to $22.8 billion (4.6%) and gold recorded $4.79 billion (1.1%). Foreign currency reserves were also made up of the IMF position of $4.82 billion (1.1%) and the IMF special drawing right (SDR) of $3.37 billion (0.8%), which are exchangeable currency withdrawal rights to the International Monetary Fund (IMF).
As of the end of November, Korea’s foreign currency reserves ($436.4 billion) remained at the 9th level in the world. China ranked first with $ 3.17 trillion, followed by $ 1.38 trillion in Japan and $ 135 million in Switzerland.
/ Reporter Jo Ji-won [email protected]
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