South Korea’s foreign exchange reserves hit a three-month high in April as a weaker U.S. dollar raised the conversion value of non-dollar assets and investment profit rose, the central bank said Monday.
The country’s foreign reserves reached $328.8 billion as of end-April, up $1.39 billion from the previous month, according to the Bank of Korea .
It marked the highest level since the FX reserves hit a record $328.91 billion in January.
Foreign reserves consist of securities and deposits denominated in overseas currencies, along with International Monetary Fund reserve positions, special drawing rights and gold bullion.
The BOK said that it logged higher management profits last month and gains in the euro and pound raised their dollar conversion value.
The euro appreciated 2.2 percent to the U.S. dollar last month and the British pound rose 1.9 percent. But the yen depreciated 3.7 percent in April amid Japan’s powerful monetary easing.
Despite some fluctuations, the FX reserves have been on the rise, aided by the continued trade surplus and inflows of foreign capital.
As of the end of March, South Korea was the world’s seventh-largest holder of foreign exchange reserves. (Yonhap News)
