A clerk sorts hundred US dollars bills at the headquarters of Hana Bank in Seoul, South Korea. File. Photo by YONHAP / EPA
June 4 (Asia Today) -- South Korea's foreign exchange reserves fell by nearly $900 million in May, reversing course after a month of growth as authorities took steps to respond to a high exchange rate.
The Bank of Korea said Wednesday that the country's foreign reserves stood at $426.99 billion at the end of May, or about 654 trillion won, down $880 million from $427.88 billion at the end of April.
The central bank said the decline was mainly due to market stabilization measures, including a foreign exchange swap with the National Pension Service.
Under the arrangement, the Bank of Korea directly lends dollars to the pension fund as part of efforts to reduce pressure on the foreign exchange market and curb sharp increases in the won-dollar exchange rate.
