Korea's foreign reserves rise for 1st time in 3 months in June

The Republic of Korea foreign reserves rebounded in June from the lowest level in five years, central bank data showed Thursday.

The country's foreign reserves stood at US$410.2 billion as of end-June, up $5.61 billion from a month earlier, according to the data from the Bank of Korea (BOK). It marked the largest amount since January when the foreign reserves amounted to $411.01 billion.

The figure had declined for two consecutive months since April, reaching the lowest level since April 2020, when foreign reserves stood at $403.98 billion, Yonhap News Agency reported.

Last month's increase was attributed to a rise in the US dollar-converted value of foreign currency assets denominated in other currencies due to a weaker dollar, as well as higher investment returns, the BOK said.

Foreign securities, such as US Treasuries, were valued at $358.5 billion as of end-June, up $1.47 billion from a month earlier. They accounted for 87.4 percent of foreign reserves.

The value of deposits rose 6.5 percent on-month to $26.54 billion over the cited period.

The Republic of Korea ranked as the world's 10th-largest holder of foreign reserves at end-May. China topped the list, followed by Japan, Switzerland, India and Russia, according to the BOK.

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