Currency exchange shops in Myeong-dong, Seoul, April 5 / Yonhap
Daily foreign exchange (FX) trading by banks in Korea hit an all-time high in the first quarter, driven by increased cross-border trading of stocks and bonds and hedging, central bank data showed Wednesday.
Average daily FX turnover, including derivatives trading, came to US$102.65 billion in the January-March period, up 21.3 percent from the previous quarter's $84.62 billion, according to the data from the Bank of Korea (BOK).
It marked the highest quarterly level since the central bank began compiling such data under the current statistical standards in 2008.
The BOK said the sharp increase in FX turnover came as foreign investors' trading of local stocks and bonds sharply increased, and the currency market also showed increased volatility.
Average daily spot FX turnover climbed 26.2 percent quarter-on-quarter to $42.39 billion in the first quarter, while derivatives trading increased 18.1 percent to $60.27 billion over the cited period, according to the central bank.
Source: Korea Times News
