South Korea's foreign reserves climb to nearly 3-year high of $428.8 billion

SEOUL, November 05 (AJP) - South Korea’s foreign exchange reserves rose for a fifth straight month in October, reaching their highest level since January in 2023, as stronger investment returns from U.S. assets helped bolster the country’s external holdings.

The Bank of Korea said Wednesday that total reserves stood at $428.8 billion at the end of October, up $6.8 billion from the previous month. The figure marks the highest since January in 2023, when reserves peaked at $429.9 billion.

The steady increase — from a five-year low of $404.6 billion in May — underscores a recovery in the country’s external position after months of volatility in global financial markets and foreign exchange pressures earlier this year.

The central bank attributed the latest rise to improved returns on foreign securities, particularly from U.S. equities, as well as the issuance of new foreign-currency-denominated bonds.

The increase helped South Korea reclaim its status as the world’s ninth-largest holder of foreign reserves, overtaking Germany and Hong Kong after a seven-month lapse.

Globally, China remains by far the largest holder with $3.34 trillion in reserves, followed by Japan with $1.34 trillion and Switzerland with $1.05 trillion. Russia, India, Taiwan, Germany, and Saudi Arabia round out the top ten.

* This article, published by Aju Business Daily, was translated by AI and edited by AJP.