South Korea Foreign Reserves Continue at Record Levels

South Korea’s foreign reserves stayed at a record level due to the continued rise in investment returns and an increase in conversion value of non-dollar denominated assets, central bank data showed Monday.

Foreigner reserves were 328.8 billion U.S. dollars as of the end of April, up 1.39 billion dollars in the prior month, according to the Bank of Korea (BOK). The reading neared to the record high of 328.91 billion dollars tallied in January 2013.

The BOK attributed to the April rise to an increase in conversion value of non-dollar denominated assets such as the euro. The European single currency rose 2.2 percent against the greenback in April, with the British pound gaining 1.9 percent versus the dollar.

The reserves stayed above the 300-billion-dollar mark since April 2011 when it topped the level for the first time in the country’s history. The level has been viewed as the psychologically important one to protect the country from potential foreign fund exodus.

As of the end of March, South Korea was the world’s seventh- largest holder of foreign reserves following China, Japan, Russia, Switzerland, China’s Taiwan and Brazil.

via Xinhua

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza