Bank of Korea's Q3 foreign exchange bank trading trend report
The daily average trading volume in South Korea's foreign exchange market surpassed $122 billion in the third quarter, setting a new all-time high.
According to the Bank of Korea's Q3 foreign exchange bank trading trend report released Friday, the daily average forex trading volume — covering spot transactions and foreign exchange derivatives — reached $122.01 billion, a record high.
That marked a 0.5 percent increase from the previous record of $121.44 billion set in the second quarter. However, the growth rate slowed sharply from the 18.3 percent expansion recorded in the second quarter.
The Bank of Korea said trade volumes expanded but the overall increase remained modest quarter-on-quarter, as exchange rate volatility eased and foreign investors' domestic securities trading declined.
According to the Korea Customs Service, the combined value of exports and imports rose $19.2 billion, or 12.4 percent, from $154.7 billion in the second quarter to $173.9 billion in the third quarter.
Over the same period, foreign investors' domestic securities trading fell 10.2 percent, from $128.5 billion to $115.4 billion.
The daily average fluctuation in the won-dollar exchange rate also narrowed, from 0.52 percent in the second quarter to 0.46 percent in the third quarter.
By product, daily average spot transaction volume fell $3.37 billion, or 6.2 percent, quarter-on-quarter to $50.74 billion, while foreign exchange derivatives trading rose $3.94 billion, or 5.9 percent, to $71.26 billion.
By institution, domestic banks' forex trading volume rose $1.38 billion, or 2.5 percent, quarter-on-quarter to $56.89 billion, while foreign bank branches saw their trading volume decline $810 million, or 1.2 percent, to $65.12 billion.
kimstar@heraldcorp.com
