South Korea's foreign exchange reserves in August hit a record high, increasing by $14.33 billion.

BlockBeats News, September 3rd. South Korea's foreign exchange reserves increased by $14.33 billion in August, marking the largest monthly gain in history, driven mainly by a significant rise in commercial banks' foreign currency deposits at the Bank of Korea.

The Bank of Korea stated on Thursday that as of the end of August, South Korea's foreign exchange reserves rose from $427.95 billion at the end of July to $442.28 billion. The Bank of Korea noted that the growth in foreign exchange reserves in August was mainly due to a sharp increase in financial institutions' foreign currency deposits. Additionally, the weakening of the US dollar against other currencies boosted investment and valuation gains on foreign currency-denominated overseas assets. The enhancement of foreign exchange reserves has strengthened South Korea's financial buffer capacity. Earlier in the year, the South Korean won experienced periodic depreciation, drawing market attention to South Korea's external financing situation.

Earlier this year, the South Korean won plummeted to its lowest level since 2009. South Korean authorities have repeatedly warned against excessive exchange rate fluctuations and have sought to curb capital outflows caused by a large number of South Korean retail investors investing heavily in overseas assets.