Korea Business News Agency - NSP NEWS AGENCY.

(Seoul=NSP NEWS AGENCY) = In June, South Korea's foreign exchange reserves decreased by $620 million. While foreign currency deposits at financial institutions increased due to the end-of-quarter effect, the repayment of foreign exchange stabilization bonds (FESBs) and foreign exchange swaps with the National Pension Service led to a decrease in reserves. Additionally, the appreciation of the U.S. dollar resulted in a decrease in the converted value of foreign currency assets.

According to the"End of June 2024 Foreign Exchange Reserves"report released by the Bank of Korea on the 3rd, South Korea's foreign exchange reserves at the end of June stood at $412.1 billion, a decrease of $620 million compared to the end of the previous month.

The Bank of Korea explained,"Although foreign currency deposits at financial institutions increased due to the end-of-quarter effect, the temporary effects of FESB maturities and foreign exchange swaps with the National Pension Service, along with the decline in the converted value of non-dollar foreign currency assets due to the strengthened U.S. dollar, contributed to the decrease."

The bank added,"The temporary decrease was due to the time lag between the maturity repayment and new issuance of FESBs in June, but the new issuance in July is expected to contribute to an increase."

As of the end of May, South Korea's foreign exchange reserves were ranked 9th in the world.

By Eun-young Huh(eunyoung114@nspna.com) and Soo-in Kang(sink606@nspna.com)

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