ID :
92732
Wed, 12/02/2009 - 15:03
Auther :
Shortlink :
https://www.oananews.org//node/92732
The shortlink copeid
(LEAD) S. Korea's foreign reserves hit all-time high in Nov.
(ATTN: UPDATES with FX market close in para 11)
SEOUL, Dec. 2 (Yonhap) -- South Korea's foreign exchange reserves rose to a
record high in November as a weaker U.S. dollar boosted the conversion value of
assets in other currencies and investment profits gained, the central bank said
Wednesday.
The nation's foreign reserves totaled US$270.89 billion as of the end of
November, up $6.7 billion from the previous month and the ninth straight monthly
gain, according to the Bank of Korea (BOK).
Last month, foreign reserves climbed to the highest level since 1950 when the BOK
began to compile related data. The previous highest level was registered in March
2008 when the reserves stood at $264.25 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 November reading indicated that the role of foreign exchange reserves as a
safety valve has been enhanced," Moon Han-geun, an official at the BOK, told
reporters.
"There will be no problem in dealing with potential external shocks given the
level of the reserves."
The upward trend in the reserves comes as the country's current account has
remained in the black since February and as foreign investors have snapped up
local stocks and bonds, prompting more dollars to flow into the country.
The November rise came thanks to a mix of favorable factors. The government
retrieved about $500 million in maturing dollar funds that it provided to local
banks, while the state-run National Pension Service repaid $700 million to the
BOK as part of its currency swap arrangement with the central bank.
Investment profits also gained and a weaker dollar bolstered the conversion value
of assets in other currencies like the euro and the yen. Market players
speculated that dollar buying intervention also contributed to the November gain.
The data came as the Korean currency has gained about 35 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.
On the back of the rising foreign reserves and eased Dubai debt woes, the local
currency closed at 1,154 won per the dollar, up 7.1 won from the previous
session.
South Korea's foreign exchange reserves declined for the eighth consecutive month
in November 2008 as foreign exchange authorities unloaded dollar holdings to stem
the won's fall and ease the deepening credit squeeze.
As of the end of October, South Korea was the world's sixth-largest holder of
foreign exchange reserves after China, Japan, Russia, Taiwan and India.
sooyeon@yna.co.kr
(END)
SEOUL, Dec. 2 (Yonhap) -- South Korea's foreign exchange reserves rose to a
record high in November as a weaker U.S. dollar boosted the conversion value of
assets in other currencies and investment profits gained, the central bank said
Wednesday.
The nation's foreign reserves totaled US$270.89 billion as of the end of
November, up $6.7 billion from the previous month and the ninth straight monthly
gain, according to the Bank of Korea (BOK).
Last month, foreign reserves climbed to the highest level since 1950 when the BOK
began to compile related data. The previous highest level was registered in March
2008 when the reserves stood at $264.25 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 November reading indicated that the role of foreign exchange reserves as a
safety valve has been enhanced," Moon Han-geun, an official at the BOK, told
reporters.
"There will be no problem in dealing with potential external shocks given the
level of the reserves."
The upward trend in the reserves comes as the country's current account has
remained in the black since February and as foreign investors have snapped up
local stocks and bonds, prompting more dollars to flow into the country.
The November rise came thanks to a mix of favorable factors. The government
retrieved about $500 million in maturing dollar funds that it provided to local
banks, while the state-run National Pension Service repaid $700 million to the
BOK as part of its currency swap arrangement with the central bank.
Investment profits also gained and a weaker dollar bolstered the conversion value
of assets in other currencies like the euro and the yen. Market players
speculated that dollar buying intervention also contributed to the November gain.
The data came as the Korean currency has gained about 35 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.
On the back of the rising foreign reserves and eased Dubai debt woes, the local
currency closed at 1,154 won per the dollar, up 7.1 won from the previous
session.
South Korea's foreign exchange reserves declined for the eighth consecutive month
in November 2008 as foreign exchange authorities unloaded dollar holdings to stem
the won's fall and ease the deepening credit squeeze.
As of the end of October, South Korea was the world's sixth-largest holder of
foreign exchange reserves after China, Japan, Russia, Taiwan and India.
sooyeon@yna.co.kr
(END)
