Korea foreign reserves rise on weaker dollar and investment gains

May 07, 2026, 08:34 am

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/Yonhap

South Korea’s foreign exchange reserves rebounded in April, increasing by $4.22 billion from the previous month, supported by a weaker U.S. dollar and higher returns on foreign asset investments.

According to the Bank of Korea

on Wednesday, the country’s foreign exchange reserves stood at $427.88 billion at the end of April, up from $423.66 billion at the end of March.

The increase came after reserves fell by $3.97 billion in March, marking a return to growth after one month.

The largest contribution came from an increase in securities holdings, which account for the majority of the reserves. Holdings of foreign securities, including government bonds, agency bonds and corporate bonds, rose by $6.37 billion to $384.07 billion.

Meanwhile, deposits declined by $2.29 billion to $18.76 billion, while Special Drawing Rights (SDRs) increased by $240 million to $15.81 billion.

A Bank of Korea official said the increase came despite market stabilization measures such as foreign exchange swaps with the National Pension Service, citing gains from the dollar conversion value of non-dollar foreign assets and higher investment returns.

The U.S. Dollar Index fell 1.5% to 98.96 at the end of April from 100.51 a month earlier, reflecting broader dollar weakness. The decline was partly attributed to growing expectations for a ceasefire agreement in the U.S.-Iran conflict.

South Korea ranked 12th globally in foreign exchange reserves as of the end of March, maintaining the same position as the previous month.

China held the world’s largest reserves at $3.34 trillion, followed by Japan with $1.37 trillion and Switzerland with $1.07 trillion.

Other countries ahead of South Korea included Russia, India, Taiwan, Germany, Saudi Arabia, Italy, France and Hong Kong.

#South Korea #foreign exchange reserves #Bank of Korea #dollar weakness #dollar index