South Korea's foreign exchange reserves increased for the first time in two months last month, driven by investment returns on foreign currency assets.

The country's global ranking for foreign reserves rose by two notches to 9th place.

This was driven by falling gold prices.

According to the Bank of Korea (BOK), South Korea's foreign exchange reserves stood at $443.16 billion at the end of October, up $2.6 billion from the end of September.

Foreign reserves had recorded their largest-ever monthly increase of $14.33 billion in August, before falling by $1.72 billion in September.

The BOK explained, "Foreign reserves increased due to investment returns on foreign currency assets and an increase in foreign currency deposits by financial institutions."

By asset type, deposits ($36.27 billion) increased by $6.32 billion.

On the other hand, securities decreased by $8.63 billion to $382.43 billion.

Gold remained unchanged at $4.79 billion as it is recorded at book value when purchased.

Beginning with statistics as of the end of August, the Bank of Korea has kept international rankings of foreign reserves private and did not disclose them in this press release either.

According to the BOK Economic Statistics System, South Korea's foreign reserves ranked 9th globally as of the end of September ($440.56 billion), rising two spots compared to August (11th).

This marks the first time in about 10 months, since the end of November last year, that the foreign exchange reserves ranking reached 9th place.

China had the largest reserves with $3.7894 trillion, followed by Japan ($1.1784 trillion), Switzerland ($1.0781 trillion), India ($737.8 billion), Russia ($731.8 billion), Taiwan ($600.7 billion), Germany ($552.8 billion), and Saudi Arabia ($465.1 billion) in 2nd to 8th places.

A BOK official explained, "Amid falling gold prices, countries like Italy and France reflected current market values in their foreign reserves, which caused South Korea's ranking to rise."
 
(Photo: Yonhap News)