ID :
33685
Wed, 12/03/2008 - 13:55
Auther :
Shortlink :
http://m.oananews.org//node/33685
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S. Korea`s FX reserves fall to $200.5 bln in Nov.
SEOUL, Dec. 3 (Yonhap) -- South Korea's foreign exchange reserves continued to fall in November mainly due to liquidity injections meant to ease an ongoing credit crunch and financial jitters, the central bank said Wednesday.
The nation's foreign reserves totaled US$200.51 billion as of end-November, down
$11.74 billion from a month ago, when they stood at $212.25 billion, marking the
eighth straight month of decline, according to the Bank of Korea.
Foreign reserves consist of securities and deposits denominated in overseas
currencies along with International Monetary Fund reserve positions, special
drawing rights and gold bullion.
"Despite higher investment profits and an early end of currency swap deals with
the state pension fund, foreign reserves declined as authorities expanded the
dollar supply to the banking sector in a bid to calm jitters sparked by the
global credit crunch," the central bank said.
"A stronger U.S. dollar also brought down the dollar conversion value of assets
in other currencies like the pound," it said.
The fall in the foreign reserve came as South Korea's currency market has been
suffering from a dollar shortage, prompting companies to hoard the safer
greenback on concerns of a financial crisis sparked by the collapse of investment
giant Lehman Brothers Holdings Inc. in September.
The won has dipped almost 38 percent to the dollar so far this year.
The BOK said it supplied around $7.5 billion to the market mainly through swap
deals in November. In October and November, the bank supplied around $10.2
billion to the market.
The government also supplied $6.7 billion to the market through the state-run
Export-Import Bank of Korea last month, according to the central bank.
As of end-October, South Korea was the world's sixth-largest holder of foreign
exchange reserves. China held the world's largest foreign reserves, worth $1.9
trillion, followed by Japan with $977.7 billion and Russia with $484.6 billion.
Taiwan held the world's fourth-largest reserves with $278.2 billion, followed by
India with $252.9 billion.
The BOK said a possible liquidity injection by authorities down the road may not
be as large as tightened overseas borrowing conditions are expected to ease and
the country's current account balance is likely to post a surplus in coming
months.
sam@yna.co.kr
(END)
The nation's foreign reserves totaled US$200.51 billion as of end-November, down
$11.74 billion from a month ago, when they stood at $212.25 billion, marking the
eighth straight month of decline, according to the Bank of Korea.
Foreign reserves consist of securities and deposits denominated in overseas
currencies along with International Monetary Fund reserve positions, special
drawing rights and gold bullion.
"Despite higher investment profits and an early end of currency swap deals with
the state pension fund, foreign reserves declined as authorities expanded the
dollar supply to the banking sector in a bid to calm jitters sparked by the
global credit crunch," the central bank said.
"A stronger U.S. dollar also brought down the dollar conversion value of assets
in other currencies like the pound," it said.
The fall in the foreign reserve came as South Korea's currency market has been
suffering from a dollar shortage, prompting companies to hoard the safer
greenback on concerns of a financial crisis sparked by the collapse of investment
giant Lehman Brothers Holdings Inc. in September.
The won has dipped almost 38 percent to the dollar so far this year.
The BOK said it supplied around $7.5 billion to the market mainly through swap
deals in November. In October and November, the bank supplied around $10.2
billion to the market.
The government also supplied $6.7 billion to the market through the state-run
Export-Import Bank of Korea last month, according to the central bank.
As of end-October, South Korea was the world's sixth-largest holder of foreign
exchange reserves. China held the world's largest foreign reserves, worth $1.9
trillion, followed by Japan with $977.7 billion and Russia with $484.6 billion.
Taiwan held the world's fourth-largest reserves with $278.2 billion, followed by
India with $252.9 billion.
The BOK said a possible liquidity injection by authorities down the road may not
be as large as tightened overseas borrowing conditions are expected to ease and
the country's current account balance is likely to post a surplus in coming
months.
sam@yna.co.kr
(END)
