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South Korea FX reserves increase in July after four months of decline

Published 08/02/2022, 05:19 PM
Updated 08/02/2022, 08:22 PM
© Reuters. FILE PHOTO: An aerial view shows apartment complexes  in Seoul, South Korea, October 5, 2020. REUTERS/Kim Hong-Ji

SEOUL (Reuters) - South Korea's foreign exchange reserves increased slightly in July, central bank data showed on Wednesday, ending four straight months of decreases led partly by authorities' dollar-selling intervention to support the won.

The country's foreign exchange reserves, measured in U.S. dollars, increased in July by $0.33 billion to reach $438.61 billion at the end of the month, the Bank of Korea said in a statement.

It was the first monthly increase after a combined $23.49 billion decrease over the last four months and only a second one since October 2021.

The BOK said the increase resulted from foreign asset investment returns and an increase in financial institutions' foreign currency deposits that offset a decrease in converted value of non-dollar assets.

© Reuters. FILE PHOTO: An aerial view shows apartment complexes  in Seoul, South Korea, October 5, 2020. REUTERS/Kim Hong-Ji

The won weakened less than 0.1% against U.S. dollar in July, following a 4.7% slump in the previous month.

(The story corrects to add 'billion' to dollar amount in 3rd paragraph.)

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