Foreign Exchange Reserves Decline for Second Consecutive Month in May

South Korea’s foreign exchange reserves have decreased for the second consecutive month. According to data released by the Bank of Korea (BOK) on June 5, the country’s foreign exchange reserves stood at US$412.83 billion as of the end of May 2024, marking a decline of US$430 million compared to the previous month.

The BOK explained that despite an increase in earnings from managing foreign assets, the foreign exchange reserves decreased due to temporary effects from foreign exchange swaps with the National Pension Service and a reduction in foreign currency deposits by financial institutions.

The foreign exchange reserves decreased for two consecutive months in January and February this year, then shifted to an increase in March. However, they returned to a decline in April and continued to decrease in May.

South Korea’s foreign exchange reserves remained the ninth largest in the world. China had the highest reserves at US$3.2 trillion, followed by Japan, Switzerland, India, and Russia.