Bank of Korea Stops Publishing FX Reserve Ranking
The Bank of Korea has stopped disclosing South Korea’s global ranking in foreign exchange reserves, which it had published since 2001, without any meaningful prior explanation. The move, in effect making comparative data on a key indicator that has symbolized the country’s external payment capacity
The Bank of Korea has discontinued publishing South Korea's global ranking in foreign exchange reserves, a practice initiated in 2001. This move, without prior explanation, is generating criticism, as it contradicts the central bank's public communication principles. The section in the monthly release that compared countries' foreign exchange reserve rankings and sizes was removed, marking the first time since February 2001 that South Korea did not disclose its global ranking.
The Bank of Korea's abrupt change in format occurred amidst growing volatility in South Korea's ranking, which fluctuated from ninth to 12th place in the world due to fluctuations in the won-dollar exchange rate and gold prices. The central bank deemed that a ranking could change even without a substantial change in external soundness, potentially causing unnecessary confusion.
Despite foreign exchange reserves reaching a record high of $442.28 billion by the end of August, the withdrawal of the ranking will make it harder to assess South Korea's position at a glance. To determine the country's objective position, one must now compare International Monetary Fund data or statistics from other central banks.
Market analysts are expected to continue criticizing the removal of a comparative indicator of the country's external financial position, arguing that it has made relevant information less accessible.
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