Daily FX Turnover in South Korea Reaches Record High in Q3 Amid Export and Stock Trading Surge

SEOUL: Daily foreign exchange trading by banks in South Korea surged to a record high in the third quarter, driven by a notable increase in exports and stock investments, according to data released by the central bank on Friday. The average daily FX turnover, encompassing both spot and derivatives trading, rose 4.6 percent to $70.91 billion from July to September, up from $67.78 billion in the previous quarter. According to Yonhap News Agency, this record-setting figure is attributed to heightened transactions linked to exports and imports, as well as vigorous stock market activity. The Bank of Korea (BOK) highlighted that the daily average turnover on the spot FX market climbed to $26.29 billion in the third quarter, marking a 6.8 percent increase compared to the preceding three-month period. Meanwhile, FX derivatives trading also experienced growth, with its average daily turnover rising 3.4 percent to $44.62 billion. The latest data reflects the dynamic nature of South Korea's financial markets, which ha ve been buoyed by a robust export sector and increased stock market participation. As the country continues to navigate global economic uncertainties, these trends in FX trading may serve as a bellwether for broader economic health and investor sentiment.