Exporters' Dollar Selling Surges 71%, Boosting Won
The amount of dollars sold by South Korean nonfinancial private companies in the foreign exchange market surged more than 70% in the second quarter from a year earlier, as the government encouraged major exporters to promptly convert export proceeds and repatriate funds held overseas amid elevated e
South Korean nonfinancial private companies sold over $263.59 billion worth of dollars in the second quarter, a 71.5% increase from the previous year, according to data submitted by the Bank of Korea to a lawmaker. This surge in dollar sales, driven by strong exports of semiconductors and other key products, nearly quadrupled net dollar selling to $109.65 billion.
The government encouraged exporters to convert export proceeds and repatriate funds, leading to increased dollar purchases and a more balanced foreign exchange market. The won-dollar exchange rate fell below 1,500 won in June and reached a high of 1,382.75 won on August 24, its strongest level since September 2022. While analysts note that other factors also influenced the exchange rate, the data highlight the significant role of increased corporate dollar sales in easing supply imbalance concerns.
Written by urgent.news from BusinessKorea's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
