Seoul: South Korea's foreign reserves experienced a rebound in June, recovering from the lowest level noted in five years, as reflected by data from the central bank of South Korea.
According to Bahrain News Agency, the country's foreign reserves were recorded at US$410.2 billion by the end of June, marking an increase of $5.61 billion compared to the previous month. This was the highest amount since January when the reserves stood at $411.01 billion. The reserves had been on a decline for two consecutive months since April, reaching a low not seen since April 2020, when they were at $403.98 billion.
The increase last month was attributed to the rise in the US dollar-converted value of foreign currency assets denominated in other currencies due to a weaker dollar, along with higher investment returns, as stated by the Bank of Korea (BOK). The valuation of foreign securities, including US Treasuries, was at $358.5 billion by the end of June, reflecting an increase of $1.47 billion from the month prior.
Additionally, the value of deposits experienced a 6.5 percent increase month-on-month, reaching $26.54 billion during the cited period. South Korea maintained its position as the world's 10th-largest holder of foreign reserves at the end of May.