South Korea's Foreign Exchange Reserves Decline For Second Month streak

South Korea's foreign exchange reserves fell for a second month in August, this is a sign that the central bank may intervene to curb the decline in the won.

South Korea's foreign exchange reserves fell as much as $ 2.88 billion to $ 367.94 billion, after a decrease of $ 3.93 billion, which symbolizes for the biggest decline in three years, the data indicated by the central bank on Thursday. The won fell last month to its weakest level since October 2011 as China surprisingly devalued the yuan after the worsening outlook for their exports, weakening currencies of developing countries, and military tension between North Korea and South Korea in highlighting the tensions on the Korean peninsula.

Currency analyst at Samsung Futures Inc. in Seoul say that we can assume a decline in foreign exchange reserves at this time because the institution is authorized to sell its dollar holdings in the market. The government will adjust the rate of decline in reserves against the movement of the domestic currency, and movements in Asian currencies will be the focus for the next few.