South Korea’s FX reserves increase in December by most in over two years

SEOUL : South Korea’s foreign exchange reserves increased for a second straight month in December 2022 and by the largest amount in more than two years, central bank data showed on Wednesday.

The country’s FX reserves stood at $423.16 billion as of the end of December, up $7.06 billion over a month, according to the Bank of Korea. It marked the biggest monthly increase since November 2020.

The increase resulted from larger foreign deposits of financial institutions and converted value of non-dollar assets, despite a downside effect from the FX swap programme with the country’s pension fund, according to the BOK.

The U.S. dollar index, a measure of the greenback’s value against six major currencies, fell 2.3 per cent in the last month of 2022.

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