Seoul: South Korea's foreign reserves increased for the second straight month in July, driven by the issuance of foreign exchange stabilization bonds, as reported by the central bank on Wednesday. The nation's foreign reserves reached US$427.95 billion by the end of July, marking a $590 million rise from the previous month, based on data from the Bank of Korea (BOK).
According to Yonhap News Agency, the increase followed a $370 million gain in June. The BOK attributed this monthly growth to the issuance of foreign exchange stabilization bonds and the enhanced U.S.-denominated value of foreign currency deposits, aided by market stabilization efforts.
Foreign securities, such as U.S. Treasuries, decreased by $340 million from the previous month, totaling $380.01 billion at the end of July, and making up 88.8 percent of the nation's total foreign reserves. Meanwhile, the value of foreign currency deposits rose by $860 million to $23.13 billion. Special drawing rights (SDRs) saw an increase of $60 million, reaching $15.7 billion. Gold bullion holdings remained constant at $4.79 billion.
The country's reserve position with the International Monetary Fund (IMF) experienced a $10 million increase from the previous month, reaching $4.32 billion at the end of July. South Korea advanced to become the world's 10th-largest holder of foreign reserves as of the end of June, moving up from 13th place a month earlier. China maintained the top position, followed by Japan, Switzerland, Russia, and India, as per the BOK.