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S. Korea posts record-high forex reserves of $410.75-B
South Korea’s foreign exchange reserves reached a record high of $410.75 billion in June, having gained $3.44 billion from May due to profits and investment returns from overseas assets and a weak dollar.
The June increase marked a third consecutive month of gain after a $3.33 billion hike in May and $3.77 billion in April.
In March, the forex shed $9 billion.
Government bonds and corporate debts surged by $6.88 billion on-month in June to reach $372.58 billion.
Foreign currency deposits slipped by $3.97 billion to $26.04 billion in the said period.
The country posted special drawing rights of $4.25 billion in June, up by $260 million on-month.
Meanwhile, its gold holdings remained flat at $4.79 billion.
South Korea ranked No. 9 globally in the size of foreign reserves, as of June.
China had the most at $3.1 trillion, followed by Japan and Switzerland, with $1.38 trillion and $912 billion.
The Bank of Korea intends to put up a US dollar funding scheme to create a cushion for the liquidity risks of insurers and brokerages that use forex reserves.
Under the scheme, short-term dollar loans would be offered through repurchase agreements, swapping US treasuries for dollar via auctions.