SEOUL (Reuters) -South Korea’s foreign exchange reserves dropped to the lowest level in five years in April, caused by market stabilising measures to ease the impact of global trade volatility.
Reserves stood at $404.67 billion at the end of April, down $4.99 billion, central bank data showed on Thursday, marking the lowest level since April 2020 and the biggest monthly drop since April 2024.
The Bank of Korea said foreign exchange swap trading with the country’s pension fund, meant to temporarily reduce dollar demand in the currency market, was one of the factors that contributed to the decline.
In early April, the won hit its weakest level in 16 years on U.S. President Donald Trump’s sweeping tariff policies. The currency later reversed course to end the month up 3.3% against the dollar, its biggest monthly gain since November 2023.
(Reporting by Jihoon Lee; Editing by Saad Sayeed)
Comments