Korea's foreign exchange reserves exceeded $416 billion last month, continuing a three-month upward trend. This increase is due to the depreciation of the U.S. dollar, which boosted foreign currency asset valuations and expanded revenue. However, as of the end of July, Korea maintained its 10th position in the global foreign exchange reserves ranking for the fifth consecutive month, failing to reclaim the 9th position.
According to the Bank of Korea's announcement on the 'foreign exchange reserves at the end of August 2025,' the reserves as of the end of last month amounted to $416.29 billion, an increase of $4.95 billion compared to the end of the previous month ($411.33 billion). Since shifting to an increase in June, the upward trend has continued in July and August.
The increase in foreign exchange reserves is attributed to the rise in foreign currency asset valuations due to the depreciation of the U.S. dollar and the expansion of revenue. According to the Bank, the dollar index (DXY), which represents the value of the dollar against the six major currencies, fell by about 2.0% in August.
Specifically, the majority of foreign exchange reserves, which consist of U.S. Treasury bonds, government agency bonds, and corporate bonds, amounted to $366.16 billion, an increase of $1.1 billion from the previous month ($365.06 billion). The deposited funds increased by $3.75 billion to $25 billion.
Special drawing rights (SDR) rose by approximately $80 million to $15.78 billion, and the IMF position increased by $20 million to $4.54 billion. Gold remained unchanged at $4.79 billion compared to the previous month.
Compared to other major countries, Korea's foreign exchange reserves stood at $411.3 billion as of the end of July, ranking 10th in the world. Korea lost the 9th position for the first time since the ranking was compiled in 2000, slipping to 10th behind Germany and Hong Kong in March.
Despite a decrease of $25.2 billion, China maintained its first place with $3.2922 trillion, followed by Japan ($1.3044 trillion), Switzerland ($1.0052 trillion), India ($690.1 billion), Russia ($681.5 billion), Taiwan ($597.9 billion), Germany ($457.1 billion), Saudi Arabia ($443.9 billion), and Hong Kong ($425.4 billion), all ranking high.