S. Korea's FX reserves fall in June as US dollar remains strong

Published : Jul 5, 2021 - 09:23 Updated : Jul 5, 2021 - 09:23

This file photo shows a Hana Bank official in Seoul inspecting US banknotes before their release into the local financial market. (Yonhap)

South Korea's foreign reserves declined in June as the US dollar's strength reduced the value of non-dollar assets, central bank data showed Monday.

The nation's foreign reserves came to $454.1 billion as of end-June, down $2.35 billion from the previous month, according to the Bank of Korea (BOK).

Foreign reserves consist of securities and deposits denominated in overseas currencies, International Monetary Fund reserve positions, special drawing rights and gold bullion.

The FX reserves declined last month as a stronger US dollar drove down the dollar-conversion value of non-dollar assets.

Foreign securities came to $419.3 billion as of end-March, up $5.29 billion from the previous month and accounting for 92.3 percent of the FX reserves.

But deposits fell $7.55 billion on-month to $21.8 billion, and gold holdings remained unchanged at $4.79 billion.

As of the end of May, South Korea was the world's eighth-largest holder of FX reserves, the BOK said. (Yonhap)