S. Korea's foreign reserves hit 2nd-highest level in Oct.

SEOUL, Nov. 3 (Yonhap) -- South Korea's foreign exchange reserves reached their
second-highest level ever in October as a weaker U.S. dollar boosted the
conversion value of assets in other currencies and investment profits rose, the
central bank said Tuesday.

The nation's foreign reserves totaled US$264.19 billion as of the end of October,
up $9.94 billion from the previous month and marking the eighth straight monthly
gain, according to the Bank of Korea (BOK).
Foreign reserves climbed to their highest level since March 2008 when they
reached a record $264.25 billion. The reserves rose by the third-largest monthly
amount in October, the BOK added.
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 country's FX reserves will likely hit a record high in November if the
weakness of the dollar continues," Moon Han-geun, an official at the BOK, told
reporters. Moon said the reserves may reach the $270 billion level at the end of
this year, but that would depend on the value of non-dollar currencies.
The October rise came thanks to a mix of favorable factors. The government
retrieved about $1.5 billion in maturing dollar funds that it provided to local
banks, and the state-run National Pension Service repaid $800 million to the BOK
as part of its currency swap arrangement with the central bank.
It added investment profits gained, and a weaker dollar boosted the conversion
value of assets in other currencies like the euro and the pound.
The data came as the Korean currency has gained about 33 percent against the
greenback since March, when it hit an 11-year low. The won tumbled 25.7 percent
versus the dollar last year alone.
In 2008, South Korea's foreign exchange reserves declined for eight straight
months before rebounding in December as FX authorities unloaded dollar holdings
to stem the won's fall and ease the deepening credit squeeze.
As of the end of September, South Korea was the world's sixth-largest holder of
foreign exchange reserves after China, Japan, Russia, Taiwan and India.
sooyeon@yna.co.kr
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