[Asia Economy Reporter Kim Eun-byeol] South Korea's foreign exchange reserves have set a record high for four consecutive months.
According to the 'Foreign Exchange Reserves at the End of September 2020' announced by the Bank of Korea on the 7th, South Korea's foreign exchange reserves last month amounted to $420.55 billion, an increase of $1.59 billion compared to the previous month.
With this, the size of the foreign exchange reserves has continued its record-breaking streak for four months since surpassing the previous highest level in January last June. However, the increase was smaller compared to August (+$2.42 billion). The foreign exchange reserves have been on the rise continuously since April, after a sharp decline in March due to the rapid fluctuations in exchange rates caused by the COVID-19 pandemic.
The Bank of Korea explained that the increase in foreign exchange reserves was due to "the issuance of foreign currency-denominated foreign exchange stabilization bonds and increased returns from foreign currency asset management."
Among the foreign exchange reserves, securities accounted for $379.08 billion (90.1% of the total), a decrease of $3.7 billion compared to the previous month, and deposits were $29.15 billion (6.9%), an increase of $5.33 billion. The remainder consisted of gold at $4.79 billion (1.1%), IMF position at $4.34 billion (1.0%), and SDR at $3.18 billion (0.8%).
As of the end of August 2020, South Korea's foreign exchange reserves ranked 9th in the world.
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