Daily FX turnover hits new high in Q3: BOK

In the third quarter, South Korean banks experienced a significant surge in foreign exchange (FX) trading, hitting a record high, according to data from the Bank of Korea (BOK). The average daily FX turnover, which includes derivatives trading, reached an impressive $122.01 billion, marking a 0.5% increase from the previous quarter. This surge has been the third consecutive quarterly record since the beginning of the year.

However, the on-quarter increase in FX trading slowed down due to a sharp rise in FX trading by robust exports being partially offset by a decrease in offshore investors' stock transactions amid a correction in the stock market. Despite this, overall exports and imports saw a combined total of $173.9 billion in the third quarter, up from $154.7 billion in the previous quarter.

Foreign investment in equities also dropped during this period, with foreigners trading 1,154 trillion won ($862.8 billion) worth of stocks per month in July and August, down from an average of 1,285 trillion won in the second quarter. The average daily spot FX turnover saw a decline of 6.2% on-quarter to $50.74 billion during the third quarter, while derivatives trading rose by 5.9% to $71.26 billion.