Korea's foreign exchange reserves fell by $70 million last month, reaching $404.6 billion. This is the lowest level in 5 years and 1 month. As of the end of April, the foreign exchange reserves maintained the 10th position globally for the second consecutive month.

According to the 'Foreign Exchange Reserves at the End of May 2025' announced by the Bank of Korea on the 5th, the foreign exchange reserves at the end of last month stood at $404.6 billion, a decrease of $70 million from the end of the previous month ($404.67 billion). This is the second consecutive month of decline, marking the lowest level since $403.98 billion recorded in April 2020.

On the 8th of last month, a staff member is organizing US dollars at the Hana Bank countermeasures center for counterfeiting in Jung-gu, Seoul. /Courtesy of Yonhap News Agency

The decrease in foreign exchange reserves appears to be influenced by a reduction in foreign currency deposits held by financial institutions, dollar sales due to the foreign exchange authorities' measures to mitigate volatility, and foreign exchange swaps with the National Pension Service. The foreign exchange authorities increased the foreign exchange swap transaction limit with the National Pension Service from $50 billion to $65 billion last December.

Looking in detail, securities, including U.S. government bonds, agency bonds, and corporate bonds, which account for most of the foreign exchange reserves, increased by $3.48 billion to $359.97 billion compared to the previous month ($356.5 billion). In contrast, deposits decreased by $3.55 billion to $19.69 billion.

Special drawing rights (SDRs) increased by $10 million from the previous month ($15.68 billion), totaling $15.68 billion. The IMF position decreased by $10 million to $4.46 billion compared to the previous month ($4.47 billion). Gold remained the same at $4.79 billion.

Korea's foreign exchange reserves, which can be compared with major countries' rankings, recorded $404.7 billion as of the end of April, ranking 10th. In March, Korea was pushed to 10th place for the first time since the rank began being counted in 2000, falling behind Germany and Hong Kong.

China took the top spot with an increase of $41 billion, reaching $3.2817 trillion, followed by Japan ($1.2982 trillion), Switzerland ($979.7 billion), India ($688.4 billion), Russia ($680.3 billion), Taiwan ($582.8 billion), Germany ($454.3 billion), Saudi Arabia ($439.2 billion), and Hong Kong ($408.7 billion).