S.Korea Sept FX reserves post second-biggest monthly decline on record
Reuters
Published Oct 05, 2022 05:03PM ET
SEOUL (Reuters) - South Korea's foreign exchange reserves shrank by nearly $20 billion in September, the second-biggest monthly drop on record, as authorities stepped up dollar-selling intervention to counter the won's slump to a 13-1/2-year low.
The country's FX reserves stood at $416.77 billion at the end of September, down $19.66 billion from $436.43 billion a month earlier, the Bank of Korea said on Thursday.
While still among the largest in the world, the country's reserves fell to the lowest level since end-July 2020 and saw the second-biggest monthly decrease on record after a $27.42 billion decline in October 2008. Reserves have fallen in nine out of the last 11 months.
The central bank cited measures to ease volatility in the foreign exchange market, an apparent reference to dollar-selling intervention, as a factor that contributed to the losses, along with declines in the converted value of non-dollar assets and financial institutions' foreign currency deposits.
The won ended September with a monthly loss of 6.5% against the dollar, the fastest in 11 years, after touching the weakest level since March 2009, while the U.S. dollar index rose 3.2%.
Get The News You Want
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.