Q3 Daily Average Forex Trading Volume $61.21 Billion... Down $4.38 Billion QoQ

Bank of Korea Announces Foreign Exchange Transactions Trends of Foreign Exchange Banks

[Image source=Yonhap News]

[Asia Economy Reporter Seo So-jeong] In the third quarter of this year, the average daily foreign exchange transaction volume decreased by about 4.4 billion dollars compared to the previous quarter due to a decline in overseas securities investment and foreign investors' domestic securities investment demand.

According to the foreign exchange transaction trends of foreign exchange banks announced by the Bank of Korea on the 26th, the average daily foreign exchange transaction volume (spot exchange and foreign exchange derivatives transactions) of foreign exchange banks in the third quarter was recorded at 61.21 billion dollars.

This is a decrease of 4.38 billion dollars (-6.7%) compared to the second quarter of this year, which recorded the highest ever at 65.59 billion dollars.

The Bank of Korea explained, "Despite the exchange rate volatility (the daily change rate of the won-dollar exchange rate) expanding from 0.46% in the second quarter to 0.49%, the foreign exchange transaction volume decreased due to a decline in residents' overseas securities investment and foreign investors' domestic securities investment demand."

By product, the spot exchange transaction volume was 21.81 billion dollars, down 3.25 billion dollars (-13.0%) from the previous quarter, and the foreign exchange derivatives transaction volume was 39.4 billion dollars, down 1.14 billion dollars (-2.8%).

By bank, the transaction volume of domestic banks was 26.29 billion dollars, down 1.74 billion dollars (-6.2%) from the previous quarter, and the transaction volume of foreign bank branches was 34.92 billion dollars, down 2.65 billion dollars (-7.0%).

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