SEOUL, KOREA - Korea's foreign exchange reserves have hit a record-high level for four consecutive months in October. Despite the U.S. Department of the Treasury complained on October 30 that Korea's foreign reserve level is excessively high, the month-on-month growth figure rose further to reach a two-year high.

 

The Bank of Korea said on November 5 that its international reserve holdings as of the end of October were US$343.23 billion, up $6.3 billion in one month.

 

Koh Won-hong, BOK senior manager responsible for international monitoring, said, "The rise was largely due to an appreciation in dollar-denominated value of other currency-denominated assets because of a strong euro, as well as to higher profit from foreign exchange asset investment."

 

As of the end of September, Korea's foreign reserve balance was seventh highest in the world, the same rank as the previous month. The top position was kept by China ($3,662.7 billion), followed by Japan ($1,273.4 billion), Switzerland ($530.0 billion), Russia ($522.6 billion), Taiwan ($412.6 billion), and Brazil ($368.7 billion).

 

Koh added that all top-ten countries except Hong Kong raised their foreign reserve balances in October as foreign money flowed into these countries after the postponement announcement on quantitative easing tapering.