KOR
▲ Foreign Exchange Trading Volume at Foreign Exchange Banks
The average daily foreign exchange transaction volume in South Korea reached another all-time high in the second quarter of this year, driven by an increase in domestic securities investments by foreign investors and heightened volatility in the won-dollar exchange rate.
According to the "Foreign Exchange Transactions by Foreign Exchange Banks in the Second Quarter" released by the Bank of Korea today, the average daily foreign exchange transaction volume (including spot and derivative transactions) during this period was tallied at $121.44 billion.
This marks the largest quarterly figure since statistics began in 2008.
It represents an 18.3% increase from the previous record set in the first quarter ($102.65 billion).
An official from the Bank of Korea explained, "This was driven by an increase in trading volumes for foreign securities investments in Korea and rising hedging demand due to ongoing volatility in the won-dollar exchange rate."
According to the Financial Supervisory Service, the trading volume of domestic securities by foreign investors stood at 475 trillion won in the fourth quarter of last year and 855 trillion won in the first quarter of this year, before surging to 1,048 trillion won during the two months of April and May alone.
The won-dollar exchange rate volatility was 0.37% in the fourth quarter of last year, 0.60% in the first quarter of this year, and 0.52% in the second quarter of this year.
By product, the average daily spot exchange trading volume increased by 27.7% from the previous quarter to $54.11 billion, while foreign exchange derivatives transactions grew by 11.7% to $67.32 billion.
By bank category, foreign exchange trading by domestic banks rose by 20.1% from the previous quarter to $55.15 billion, while transactions at branches of foreign banks increased by 16.8% to $65.93 billion.
(Photo provided by Bank of Korea, Yonhap News)
※ Please note: This article was translated by AI and may contain errors.
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