In this file photo, an official checks dollar notes at Hana Bank's Counterfeit Notes Response Center in Seoul on Feb. 18. (Yonhap)
In this file photo, an official checks dollar notes at Hana Bank's Counterfeit Notes Response Center in Seoul on Feb. 18. (Yonhap)

South Korea's foreign reserves fell from a month earlier in February to reach the lowest level in nearly five years amid the weak local currency, central bank data showed Thursday.

The country's foreign reserves had come to US$409.21 billion as of end-February, down $1.8 billion from a month earlier, according to the data from the Bank of Korea.

It was the lowest level since May 2020, when the figure stood at $407.31 billion.

The BOK attributed the decrease to financial authorities' responses to the volatility in the foreign exchange market.

The BOK and the National Pension Service agreed in December to raise their currency swap deal to $65 billion from $50 billion and to extend the deal by one year to the end of 2025.

The local currency has stayed well below 1,450 won against the US dollar, a level unseen in about 16 years, amid domestic political chaos caused by President Yoon Suk Yeol's martial law imposition and the strengthening of the greenback.

Foreign securities, such as US Treasuries, had been valued at $357.38 billion as of end-February, down $4.64 billion from a month earlier. They accounted for 87.3 percent of foreign reserves.

The value of deposits, however, had risen $2.71 billion to $28.01 billion over the cited period.

Foreign reserves consist of securities and deposits denominated in overseas currencies, International Monetary Fund reserve positions, special drawing rights and gold bullion.

South Korea ranked as the world's ninth-largest holder of foreign reserves at end-February.

China topped the list, followed by Japan, then Switzerland, India and Russia, the data showed. (Yonhap)