Korea's foreign reserves fall to fresh five-year low in May, BOK data shows

Korea's foreign reserves fell for the second consecutive month in May to reach the lowest level in five years due mainly to a decrease in foreign currency deposits by financial institutions, central bank data showed Thursday.

The country's foreign reserves stood at $404.6 billion as of the end of May, down $70 million from a month earlier, according to the data from the Bank of Korea (BOK).

The reading marks the lowest level since April 2020, when the foreign reserves stood at $403.98 billion. It also marks the second straight monthly fall following a near $5 billion decline in April that sent the foreign reserves to a five-year low.

Foreign securities, such as U.S. Treasuries, were valued at $606 billion as of the end of May, up $3.5 billion from a month earlier. They accounted for 89 percent of foreign reserves.

The value of deposits fell by $3.5 billion to $19.7 billion over the cited period.

Special drawing rights (SDRs) and gold bullion remained unchanged at $15.7 billion and $4.8 billion, respectively, while the country's International Monetary Fund (IMF) reserve positions stood at $4.5 billion as of end-May, the data showed.

Korea ranked as the world's 10th-largest holder of foreign reserves at the end of April.

China topped the list, followed by Japan, Switzerland, India and Russia, according to the BOK.

Yonhap