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Korea's foreign reserves fall sharply in March, ranking drops to 12th globally

Published: 03 Apr. 2026, 09:02

U.S. dollar bills [REUTERS/YONHAP]

Korea's foreign reserves posted their sharpest monthly decline in about a year in March amid a stronger dollar and authorities' efforts to manage exchange rate volatility, the central bank said Friday.

The country's foreign reserves stood at $423.66 billion as of end-March, down $3.97 billion from a month earlier, according to the data from the Bank of Korea (BOK).

It was the sharpest decline since April 2025, when the amount fell by $4.99 billion on month.

The reserves fell in December for the first time since June and continued to decline through January, then rose in February.

"The U.S. dollar strengthened in March, reducing the dollar value of Korea's foreign currency assets denominated in other currencies. Also attributable were market stabilization measures, such as foreign exchange swaps with the National Pension Service," a BOK spokesperson said.

Foreign securities, including U.S. Treasurys, fell by $3.97 billion from a month earlier to $423.66 billion at the end of March, accounting for 89.2 percent of the country's total foreign reserves.

The value of foreign currency deposits fell by $1.44 billion to $21.05 billion, while special drawing rights fell by $200 million to $15.57 billion.

Gold bullion holdings remained unchanged at $4.79 billion.

The country's reserve position with the International Monetary Fund decreased by $60 million from a month earlier to $4.55 billion at the end of March, the data showed.

Korea ranked as the world's 12th-largest holder of foreign reserves as of the end of February, down from No. 10 a month earlier.

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

"Though Korea's foreign exchange reserves increased by $1.7 billion in February, some peer countries mark their gold holdings to market for comparison, and recent gains in gold prices have contributed to their higher rankings," the BOK spokesperson said.

Yonhap