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59405
Thu, 05/07/2009 - 15:32
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S. Korea's foreign reserves rise to 7-month high of US$212.48 bln in April
SEOUL, May 7 (Yonhap) -- South Korea's foreign exchange reserves rose to a seven-month high in April, boosted by overseas sales of state bonds and a rise in the dollar value of assets in European currencies, the central bank said Thursday.
The nation's foreign reserves reached US$212.48 billion as of the end of last
month, up from $206.34 billion a month earlier, the Bank of Korea said in a
statement. The April figure is the highest since September last year, when the
corresponding figure was $239.67 billion, according to the central bank.
The monthly growth of $6.14 billion marks the largest increase since January 2006
when the reserves expanded by $6.54 billion.
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 government's $3 billion overseas debt sale helped sharply expand the foreign
reserves," said Ha Keun-cheol, a BOK official. "Gains in British pounds and euros
against the U.S. dollar also contributed to the reserves by raising the value of
assets denominated in European currencies."
Last year, South Korea's foreign exchange reserves declined for eight straight
months before rebounding in December as authorities unloaded dollar holdings to
stem the won's losses and ease a deepening credit squeeze.
After hitting its lowest level of the year on March 2, the South Korean won has
gained nearly 23 percent against the U.S dollar due mainly to the government's
sale of $3 billion of dollar-denominated bonds overseas and the nation's record
current account surplus. The current account surplus, the broadest measure of
cross-border trade, hit a record $6.65 billion in March.
"Recent stabilization in the local unit is expected to boost foreign reserves
down the road and ease difficulties over local lenders' foreign currency
funding," said Ha.
As of the end of April, South Korea was the world's sixth-largest holder of
foreign exchange reserves after China, Japan, Russia, Taiwan and India.
The nation's foreign reserves reached US$212.48 billion as of the end of last
month, up from $206.34 billion a month earlier, the Bank of Korea said in a
statement. The April figure is the highest since September last year, when the
corresponding figure was $239.67 billion, according to the central bank.
The monthly growth of $6.14 billion marks the largest increase since January 2006
when the reserves expanded by $6.54 billion.
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 government's $3 billion overseas debt sale helped sharply expand the foreign
reserves," said Ha Keun-cheol, a BOK official. "Gains in British pounds and euros
against the U.S. dollar also contributed to the reserves by raising the value of
assets denominated in European currencies."
Last year, South Korea's foreign exchange reserves declined for eight straight
months before rebounding in December as authorities unloaded dollar holdings to
stem the won's losses and ease a deepening credit squeeze.
After hitting its lowest level of the year on March 2, the South Korean won has
gained nearly 23 percent against the U.S dollar due mainly to the government's
sale of $3 billion of dollar-denominated bonds overseas and the nation's record
current account surplus. The current account surplus, the broadest measure of
cross-border trade, hit a record $6.65 billion in March.
"Recent stabilization in the local unit is expected to boost foreign reserves
down the road and ease difficulties over local lenders' foreign currency
funding," said Ha.
As of the end of April, South Korea was the world's sixth-largest holder of
foreign exchange reserves after China, Japan, Russia, Taiwan and India.
