S. Korea's foreign reserves fall to US$258.1 bln
SEOUL, July 2 (Yonhap) -- South Korea's foreign exchange
reserves dropped slightly in June from May as the central bank
sold some of its dollar holdings to bolster the local currency
amid spiraling inflation.
The nation's foreign reserves fell to US$258.1 billion as of
the end of June from $258.2 billion a month earlier, the Bank of
Korea (BOK) said in a statement Wednesday.
Foreign reserves consist of securities and deposits denominated
in overseas currencies along with International Monetary Fund
reserve positions, special drawing rights and gold bullion.
"Foreign reserves fell marginally in June as the central bank's
dollar supply to the foreign exchange market offset the effects of
higher investment profits and a weaker U.S. dollar," said Ha
Keun-cheol, a BOK official.
Dealers estimated that foreign exchange authorities unloaded at
least $5 billion in June to curb the won's steep losses.
A weaker won against the greenback is putting upward pressure
on inflation by making imports more expensive.