Seoul:Daily foreign exchange (FX) trading by banks in South Korea experienced a slight rise, reaching a new high in the third quarter, primarily driven by strong trade-related transactions, according to recent data from the central bank.
According to Yonhap News Agency, the average daily FX turnover, including derivatives trading, rose to an average of US$122.01 billion during the July-September period. This marks an increase of $570 million, or 0.5 percent, from the previous quarter, as per data from the Bank of Korea (BOK). This quarterly figure has been setting new records for the third consecutive quarter since the beginning of the year.
The BOK noted that the increase in FX trading was slower than previous quarters as a significant rise in trading due to robust exports was partially offset by a decrease in offshore investors' stock transactions amidst a stock market correction. During the third quarter, combined exports and imports increased to $173.9 billion from $154.7 billion in the previous quarter. However, foreign investors traded an average of 1,154 trillion won ($862.8 billion) worth of equities per month in July and August, a decrease from the 1,285 trillion won monthly average in the second quarter.
In detail, average daily spot FX turnover saw a 6.2 percent decline on-quarter to $50.74 billion, while derivatives trading increased by 5.9 percent to $71.26 billion.