Foreign reserves down for 3rd month in October on strong dollar, stabilization measures

South Korea’s foreign reserves fell for a third straight month in October due to the strong U.S. dollar and market stabilization measures, central bank data showed Friday.

The country’s foreign reserves had come to US$412.87 billion as of end-October, down $1.24 billion from the previous month, according to the data from the Bank of Korea (BOK).

The dollar’s ascent last month reduced the converted value of holdings denominated in other currencies, the BOK explained. Also, the central bank conducted measures to stabilize the currency market.

The dollar index that gauges the greenback’s value against major peers slipped 0.1 percent last month, the central bank said.

Foreign reserves consist of securities and deposits denominated in overseas currencies, International Monetary Fund reserve positions, special drawing rights and gold bullion.

Foreign securities, such as U.S. Treasuries, had been valued at $369.98 billion as of end-October, down $2.6 billion from a month earlier. They accounted for 89.6 percent of foreign reserves, the data showed.

The value of deposits stood at $18.87 billion at the end of October, up $1.47 billion from a month earlier.

South Korea ranked as the world’s ninth-largest holder of foreign reserves at the end of September, the BOK said.