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South Korea FX reserves increase in July after four months of decline
Abstract：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 countrys 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.
The won weakened less than 0.1% against U.S. dollar in July, following a 4.7% slump in the previous month.
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