Post by : Badri Ariffin

Seoul, November 5 – South Korea's stock of foreign exchange reserves rose to US$428.82 billion by the end of October, the Bank of Korea said on Wednesday. The figure represents the nation's highest level in nearly three years and marks the fifth month in a row of increases.

The month-on-month gain of US$6.8 billion from September was attributed mainly to stronger investment returns and the recent issuance of foreign currency-denominated FX stabilisation bonds, which together helped bolster external liquidity. Market observers say steady inflows and active reserve management have supported the rise despite continued global economic uncertainty.

A closer look at the reserve mix reveals several shifts:

• Foreign securities (including US Treasuries) eased by US$460 million, standing at US$377.96 billion, and accounting for 88.1% of total reserves.

• Foreign currency deposits increased by US$7.4 billion, reaching US$25.94 billion.

• Special drawing rights (SDRs) remained steady at US$15.71 billion, while gold holdings held firm at US$4.79 billion.

• By contrast, the country's IMF reserve position edged down by US$80 million to US$4.41 billion.

On the world stage, South Korea retains its place as the ninth-largest holder of foreign reserves, behind the likes of China, Japan and Switzerland. Analysts note that ample reserves act as a buffer against exchange-rate swings, underpin cross-border trade, and instil investor confidence in volatile times.

The latest uptick underscores South Korea's commitment to maintaining financial stability, positioning the economy to absorb external shocks and adapt to shifting global interest-rate and trade conditions.

#Global