Central bank data showed on Tuesday that South Korea’s foreign reserves fell in October, the third straight month of gains, due to a fall in the value of non-US dollar assets and a drop in deposits amid a stronger US dollar.
According to Bank of Korea (BOK) data, the country’s foreign reserves stood at $415.69 billion by the end of October, which is $4.28 billion less than a month ago.
The central bank attributed the decline to a decline in the converted value of non-dollar assets due to a stronger greenback and a decline in deposits, the news agency reported.
The central bank said the dollar index, which measures the greenback’s value against major peers, rose 3.6 percent last month, dragging down the convertible value of non-dollar assets.
Foreign reserves include securities and deposits in foreign currencies, International Monetary Fund reserve positions, special drawing rights and gold bullion.
Foreign securities, such as U.S. Treasuries, were worth $373.25 billion at the end of October, down $50 million from a month earlier. According to statistics, they have 89.8 percent of foreign reserves.
Deposits stood at $18.42 billion at the end of October, down $3.86 billion over the period.
South Korea ranked as the world’s ninth largest holder of foreign reserves at the end of September, the BOK said.