Foreign reserves down for 2nd month in May on decreased deposits, dollar's rise
Currency traders watch monitors in front of screens showing the exchange rate of Korean won against the U.S. dollar at the foreign exchange dealing room of the KEB Hana Bank headquarters in Seoul, June 5. Yonhap
Korea's foreign reserves declined in May due to a fall in deposits and the central bank's foreign currency swap with the country's national pension fund, central bank data showed Wednesday.
The country's foreign reserves had come to $412.83 billion as of end-May, down $3.51 billion from the previous month, according to the data from the Bank of Korea (BOK).
The central bank said deposits fell and it provided dollars to the national pension fund under their foreign currency swap deal.
Foreign reserves consist of securities and deposits denominated in overseas currencies, International Monetary Fund reserve positions, special drawing rights and gold bullion.
Foreign securities, such as U.S. Treasuries, had been valued at $370.41 billion as of end-May, down $200 million from a month earlier. They accounted for 89.7 percent of foreign reserves, the data showed.
The value of deposits stood at $18.5 billion at the end of May, down $350 million over the cited period.
Korea ranked as the world's ninth-largest holder of foreign reserves at the end of April, the BOK said. (Yonhap)