Foreign reserves down for 3rd month in June on debt payments, currency swap

South Korea's foreign reserves declined for a third consecutive month in June due to the central bank's foreign currency swap with the country's national pension fund and the repayment of foreign exchange stabilization bonds, central bank data showed Wednesday. The country's foreign reserves had come to US$412.21 billion as of end-June, down $620 million from the previous month, according to the data from the Bank of Korea (BOK). The central bank said it provided dollars to the national pension fund under their foreign currency swap deal and paid back maturing foreign exchange stabilization bonds. Foreign reserves consist of securities and deposits denominated in overseas currencies, International Monetary Fund reserve positions, special drawing rights and gold bullion. Foreign securities, such as U.S. Treasuries, had been valued at $363.98 billion as of end-June, down $6.44 billion from a month earlier. They accounted for 88.3 percent of foreign reserves, the data showed. The value of deposits stood at $24.43 billion at the end of June, up $5.94 billion over the cited period. South Korea ranked as the world's ninth-largest holder of foreign reserves at the end of May, the BOK said. Source: Yonhap News Agency