South Korea’s foreign reserves fall most in 14 years

Pedestrians cross a road in front of the Bank of Korea headquarters in Seoul on July 13, 2022, (Photo by Jung Yeon-je / AFP)

SEOUL: South Korea’s foreign reserves shrank by the most in almost 14 years in September, as the central bank drew on them to shore up a won that’s under pressure from the Federal Reserve’s (Fed) policy tightening.

The reserves dropped by US$19.7bil (RM91bil) to US$416.8bil (RM1.93 trillion), the Bank of Korea (BoK) said in a statement yesterday, citing “steps to ease volatility in the foreign exchange (forex) market” among reasons for the decline.