South Korean Banks See Record Jump in Daily FX Turnover during Q2

According to the recent data published by the Bank of Korea (BOK), FX trading activity across the country’s banking sector touched a fresh high in the second quarter of 2022. The details shared by the bank highlight that the daily FX turnover touched $65.59 billion between April and June, which is up by 0.1% compared to the previous quarter.

In addition, the daily FX turnover figure includes the trading of derivatives. BOK noted that the latest amount is the highest number since 2008.

One of the major reasons behind the latest spike in the forex activity is the jump in market volatility across the global foreign exchange market amid uncertain economic conditions.

With a GDP of more than $1.6 trillion, South Korea is one of the biggest economies in the world. The country’s growing exports have played an important role in its economic growth during the past decade.

However, South Korea witnessed a slight dip in its import and export activities in the last quarter as the daily average volume touched $5.27 billion, compared to $5.39 billion in the first quarter of 2022.

FX Spots

The Bank of Korea highlighted that the daily average turnover across the FX spots reached the level of $25.05 billion, which is up by almost 0.4% compared to the first quarter of 2022. Despite an overall jump in the foreign exchange trading activity in the past quarter, the daily average transactions related to FX derivatives touched $40.54 billion, which is 0.1% down compared to the previous quarter, BOK noted in its recent report.