Finance, Forex and Investments

FX reserves set new record in Jan

Summary: Korea s foreign exchange reserves rose to a fresh high in January as a soft U S dollar bolstered the conversion value of assets in other currencies the central bank said Monday The country s foreign reserves reached $295 96 billion as of the end of January up $4 39 billion from the previous month according to the Bank of Korea The reserves rose for the second straight month in January surpassing the previous record high of $293 35 billion registered in October last year Foreign reserves have been on the rise as dollar inflows have increased amid robust exports and sustained buying of Korean assets by foreign investors Foreign reserves consist of securities and deposits denominated in overseas currencies along with International Monetary Fund IMF reserve positions special drawing rights and gold bullion Amid a rise in investment profit the reserves increased as gains in the euro and the pound boosted their dollar conversion value said Shin Jae hyuk an economist at the BOK For now it is hard to say when the reserves will hit the $300 billion mark as the value of non dollar currencies fluctuate because of unpredictable factors like the Egyptian unrest In January the euro rose 2 3 percent to the dollar on reduced fears about the euro zone debt crisis and growing prospects for a potential rate increase in the region The pound gained 2 7 percent to the greenback As of the end of December Korea was the world s sixth largest holder of foreign exchange reserves after China Japan Russia Taiwan and India Korea s reserves have rebounded since falling to $200 51 billion in November 2008 during the global financial crisis Yonhap Copyrights ⓒ JoongangIlbo Jcube Interactive Inc All rights reserved Korea s foreign exchange reserves rose to a fresh high in January as a soft U S dollar bolstered the conversion value of assets in other currencies the central bank said Monday The country s foreign reserves reached $295 96 billion as of the end of January up $4 39 billion from the previous month according to the Bank of Korea The reserves rose for the second straight month in January surpassing the previous record high of $293 35 billion registered in October last year Foreign reserves have been on the rise as dollar inflows have increased amid robust exports and sustained buying of Korean assets by foreign investors Foreign reserves consist of securities and deposits denominated in overseas currencies along with International Monetary Fund IMF reserve positions special drawing rights and gold bullion Amid a rise in investment profit the reserves increased as gains in the euro and the pound boosted their dollar conversion value said Shin Jae hyuk an economist at the BOK For now it is hard to say when the reserves will hit the $300 billion mark as the value of non dollar currencies fluctuate because of unpredictable factors like the Egyptian unrest In January the euro rose 2 3 percent to the dollar on reduced fears about the euro zone debt crisis and growing prospects for a potential rate increase in the region The pound gained 2 7 percent to the greenback As of the end of December Korea was the world s sixth largest holder of foreign exchange reserves after China Japan Russia Taiwan and India Korea s reserves have rebounded since falling to $200 51 billion in November 2008 during the global financial crisis Yonhap Copyrights ⓒ JoongangIlbo Jcube Interactive Inc All rights reserved

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