Bank of Korea stops publishing global foreign exchange reserve rankings

The Bank of Korea has discontinued the publication of South Korea’s global ranking in foreign exchange reserves, a practice maintained for over 25 years since the 2001 financial crisis. The decision, made without prior explanation, has drawn criticism regarding transparency and public communication.

The central bank stated that the change in data format is due to the limited analytical value of simple rankings, which can fluctuate significantly based on exchange rates and gold prices without reflecting actual external economic soundness. Consequently, users must now consult the International Monetary Fund (IMF) or individual central bank statistics to compare rankings.

Despite the change in reporting format, South Korea’s foreign exchange reserves saw a record monthly increase in August, reaching $442.28 billion—a jump of $14.33 billion from July. This surge was driven by increased foreign currency deposits from financial institutions, higher investment returns, and increased US dollar-equivalent values of other currency assets.

Separately, the banking sector is experiencing a surge in activity. Following consecutive interest rate hikes by the Bank of Korea and expectations of prolonged high rates from the US Federal Reserve, major financial stocks have strengthened. Total regular deposits at South Korea’s five major banks surpassed 1,000 trillion won for the first time, driven by a ‘money move’ as investors seek higher yields in high-interest deposit products.