ID :
38826
Mon, 01/05/2009 - 09:29
Auther :
Shortlink :
http://m.oananews.org//node/38826
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Korea's foreign reserves rise to US$201.2 bln in Dec.
SEOUL, Jan. 5 (Yonhap) -- South Korea's foreign exchange reserves rose in
December for the first time in nine months as a weaker U.S. dollar boosted the
dollar value of assets in other currencies, the central bank said Monday.
The nation's foreign reserves totaled US$201.22 billion as of the end of
December, up $720 million from a month earlier, according to the Bank of Korea
(BOK).
Foreign reserves consist of securities and deposits denominated in overseas
currencies along with International Monetary Fund reserve positions, special
drawing rights and gold bullion.
The country's foreign reserves had declined for the eighth straight month in
November as the foreign exchange authorities tapped their dollar holdings to
bolster the sliding local currency and ease a dollar crunch.
"Despite a dollar liquidity supply by foreign exchange authorities to ease market
jitters, the foreign reserves rose last month due to higher investment profits
and a rise in the dollar conversion value of non-dollar assets, including the
euro," said Ha Keun-cheol, an official at the BOK.
"Given an expected annual surplus of the current account and eased sell-offs of
stocks by foreigners, it is fair to say that jitters over dollar liquidity
shortages would be eased although the amount of the foreign reserves itself could
face some fluctuations."
South Korea's current account has begun to swing to the black since October, and
is expected to post a surplus worth around $22 billion this year, according to
the central bank.
On Oct. 30, the BOK announced a $30 billion currency swap agreement with the U.S.
Federal Reserve, tapping $10.4 billion out of the swap line so far. The use of
the swap facility helped ease fears about the declining foreign reserves. The
Korean currency fell 25.7 percent to the dollar last year alone, becoming one of
the world's worst-performing currencies.
The BOK said the government and the central bank have pumped a combined $37.7
billion into the financial system since October out of a planned $55 billion. In
December alone, they supplied $5.8 billion, the BOK added.
As of end-November, South Korea was the world's sixth-largest holder of foreign
exchange reserves after China, Japan, Russia, Taiwan and India.
sooyeon@yna.co.kr
(END)
December for the first time in nine months as a weaker U.S. dollar boosted the
dollar value of assets in other currencies, the central bank said Monday.
The nation's foreign reserves totaled US$201.22 billion as of the end of
December, up $720 million from a month earlier, according to the Bank of Korea
(BOK).
Foreign reserves consist of securities and deposits denominated in overseas
currencies along with International Monetary Fund reserve positions, special
drawing rights and gold bullion.
The country's foreign reserves had declined for the eighth straight month in
November as the foreign exchange authorities tapped their dollar holdings to
bolster the sliding local currency and ease a dollar crunch.
"Despite a dollar liquidity supply by foreign exchange authorities to ease market
jitters, the foreign reserves rose last month due to higher investment profits
and a rise in the dollar conversion value of non-dollar assets, including the
euro," said Ha Keun-cheol, an official at the BOK.
"Given an expected annual surplus of the current account and eased sell-offs of
stocks by foreigners, it is fair to say that jitters over dollar liquidity
shortages would be eased although the amount of the foreign reserves itself could
face some fluctuations."
South Korea's current account has begun to swing to the black since October, and
is expected to post a surplus worth around $22 billion this year, according to
the central bank.
On Oct. 30, the BOK announced a $30 billion currency swap agreement with the U.S.
Federal Reserve, tapping $10.4 billion out of the swap line so far. The use of
the swap facility helped ease fears about the declining foreign reserves. The
Korean currency fell 25.7 percent to the dollar last year alone, becoming one of
the world's worst-performing currencies.
The BOK said the government and the central bank have pumped a combined $37.7
billion into the financial system since October out of a planned $55 billion. In
December alone, they supplied $5.8 billion, the BOK added.
As of end-November, South Korea was the world's sixth-largest holder of foreign
exchange reserves after China, Japan, Russia, Taiwan and India.
sooyeon@yna.co.kr
(END)
