South Korea's foreign reserves increased for the second month in August
South Korea's foreign reserves grew for the second consecutive month in August, reaching $415.92 billion, an increase of $2.41 billion from the previous month, according to data from the Bank of Korea (BOK). This rise is attributed to the higher value of non-U.S. dollar assets, fueled by a weaker dollar, and gains from investments.
The dollar index, which measures the value of the U.S. dollar against a basket of major currencies, fell by 3.1% in August. This decline enhanced the converted value of South Korea's non-dollar assets, contributing to the overall increase in foreign reserves.
Foreign reserves are composed of various assets, including securities, deposits in foreign currencies, International Monetary Fund (IMF) reserve positions, special drawing rights (SDRs), and gold bullion. As of the end of August, foreign securities—such as U.S. Treasuries—made up the largest portion, valued at $369.44 billion, which is $2.39 billion higher than the previous month, accounting for 88.8% of the total reserves.
Conversely, the value of foreign currency deposits decreased slightly by $310 million, totaling $22.05 billion.
South Korea remains one of the top holders of foreign reserves globally, ranking ninth as of the end of July.
