Average Daily Forex Trading in Q2 at $52.02 Billion... Down 12.4%

[Asia Economy Reporter Kim Eun-byeol] The average daily foreign exchange transaction amount, which recorded an all-time high in the first quarter due to the COVID-19 pandemic, decreased in the second quarter.

According to the "Foreign Exchange Transaction Trends of Foreign Exchange Banks in the Second Quarter of 2020" released by the Bank of Korea on the 28th, the average daily foreign exchange transactions (spot exchange and foreign exchange derivatives transactions) of foreign exchange banks in the second quarter amounted to $52.02 billion, down 12.4% ($7.35 billion) from the previous quarter ($59.37 billion).

A Bank of Korea official explained, "The cause is that exchange rate volatility decreased compared to the previous quarter, and the outflow of foreign stock funds also reduced, leading to a decline in related foreign exchange derivatives transaction demand."

The average daily fluctuation of the KRW-USD exchange rate in the second quarter was 5.5 won, down from 8.0 won in the first quarter. The scale of foreign stock fund inflows and outflows also decreased from -$13.33 billion in the first quarter to -$8.03 billion in the second quarter.

By product, spot exchange transaction volume was $20.32 billion, down 3.8% ($0.79 billion) from the previous quarter. Foreign exchange derivatives transaction volume was $31.7 billion, down 17.1% ($6.56 billion) from the previous quarter.

By bank, domestic banks' transaction volume was $24.57 billion, down 5.8% ($1.5 billion) from the previous quarter. Foreign bank branches' transaction volume was $27.45 billion, down 17.6% ($5.85 billion) from the previous quarter.

This content was produced with the assistance of AI translation services.