April Foreign Exchange Reserves Reach $427.9 Billion... Up $4.2 Billion on Investment Returns and Weak Dollar

Bank of Korea Announces April Foreign Exchange Reserves
Securities Holdings Increase by $6.73 Billion in One Month
Weaker Dollar Drives Up Dollar Value of Assets in Other Currencies

Last month, South Korea's foreign exchange reserves increased by more than $4.2 billion despite efforts to defend the exchange rate, driven by a rise in the U.S. dollar equivalent of assets denominated in other currencies and increased investment returns.

According to the Bank of Korea on May 7, as of the end of April 2026, South Korea's foreign exchange reserves stood at $427.88 billion, up $4.22 billion from $423.66 billion at the end of the previous month.

Foreign exchange reserves had declined for two consecutive months in December 2025 and January 2026, but rebounded in February due to the issuance of new Foreign Exchange Stabilization Fund Bonds. However, they plunged by $3.97 billion in March as a result of the Middle East war.

The Bank of Korea explained that, despite market stabilization measures such as a foreign exchange swap with the National Pension Service last month, the increase in the U.S. dollar equivalent of assets denominated in other currencies and higher investment returns led to the overall rise in foreign exchange reserves.

The dollar index, which measures the value of the U.S. dollar against the currencies of six major countries, dropped 1.5% from 100.51 at the end of March to 98.96 at the end of April. As a result, in April, the value of the euro, pound sterling, and Australian dollar rose by 1.9%, 2.3%, and 4.0% respectively against the U.S. dollar, with the exception of the Japanese yen, which rose by 0.3%.

By asset type, the foreign exchange reserves consisted of $384.07 billion in securities (89.8%), $18.76 billion in deposits (4.4%), $15.81 billion in Special Drawing Rights (SDRs) at the International Monetary Fund (IMF) (3.7%), $4.79 billion in gold (1.1%), and $4.45 billion in IMF positions (1.0%).

Securities and SDRs increased by $6.37 billion and $2.4 billion, respectively, compared to the end of the previous month. However, deposits and IMF positions decreased by $2.29 billion and $90 million, respectively, during the same period, limiting the overall increase in foreign exchange reserves. Gold holdings at the end of April remained unchanged from the previous month.

As of the end of March, South Korea's foreign exchange reserves ranked 12th in the world for the second consecutive month, with China holding the largest amount at $3.3421 trillion.

This content was produced with the assistance of AI translation services.