SEOUL, June 6 (Reuters) - The Bank of Korea (BOK) assesses it is more desirable to maintain its dollar liquidity than to increase gold holdings for foreign exchange reserves at this point, the central bank said.
"A cautious approach is necessary for determining whether to increase the ratio of gold in the foreign exchange reserves," the BOK's Reserve Management Group said on Tuesday.
The BOK released the gold management policy along with the results of its first inspection of gold holdings on May 23.
It said the inspection at the Bank of England, where all of its gold holdings are stored, concluded without any major concerns other than some simple errors in refiner marks on three gold bars, which it said are frequent.
The Bank of Korea holds 104.4 tonnes of gold in its foreign exchange reserves, or $4.8 billion, which account for 1.14% of its total $421 billion in reserves as of the end of May.
Persons:
BOK, Jihoon Lee, Gerry Doyle
Organizations:
Bank of Korea, BOK's Reserve Management, Bank of England, Thomson
Locations:
SEOUL, London