ID :
98239
Tue, 01/05/2010 - 10:51
Auther :
Shortlink :
https://www.oananews.org//node/98239
The shortlink copeid
S. Korea's foreign reserves dip from record high in Dec.
SEOUL, Jan. 5 (Yonhap) -- South Korea's foreign exchange reserves fell from a record high in December as a strong U.S. dollar eroded the conversion value of assets in other currencies, the central bank said Tuesday.
The country's foreign reserves totaled US$269.99 billion as of the end of
December, down $900 million from the previous month and the first decline in 10
months, according to the Bank of Korea (BOK).
But for the whole year of 2009, foreign reserves rose by $68.77 billion, marking
the largest full-year increase on record, the BOK added. In November, the
country's foreign reserves hit an all-time high of $270.89 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.
"In December, the reserves declined mainly because a strong dollar brought down
the conversion value of other currencies like the euro and the yen, outweighing
several favorable factors," Moon Han-geun, an official at the BOK, told
reporters.
Moon said that given expected investment gains and the repayment of the swap
arrangement by the National Pension Service (NPS), there is a possibility that
the reserves will be on the upward trend down the road, but that would also
depend on the value of non-dollar currencies.
In December, the government retrieved about $200 million in maturing dollar funds
that it provided to local banks, while the NPS repaid $1.3 billion to the BOK as
part of its currency swap arrangement with the central bank. This year, the BOK
plans to retrieve an additional $1.2 billion from the NPS.
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 November, 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)
The country's foreign reserves totaled US$269.99 billion as of the end of
December, down $900 million from the previous month and the first decline in 10
months, according to the Bank of Korea (BOK).
But for the whole year of 2009, foreign reserves rose by $68.77 billion, marking
the largest full-year increase on record, the BOK added. In November, the
country's foreign reserves hit an all-time high of $270.89 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.
"In December, the reserves declined mainly because a strong dollar brought down
the conversion value of other currencies like the euro and the yen, outweighing
several favorable factors," Moon Han-geun, an official at the BOK, told
reporters.
Moon said that given expected investment gains and the repayment of the swap
arrangement by the National Pension Service (NPS), there is a possibility that
the reserves will be on the upward trend down the road, but that would also
depend on the value of non-dollar currencies.
In December, the government retrieved about $200 million in maturing dollar funds
that it provided to local banks, while the NPS repaid $1.3 billion to the BOK as
part of its currency swap arrangement with the central bank. This year, the BOK
plans to retrieve an additional $1.2 billion from the NPS.
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 November, 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)
