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Daily FX Turnover Of South Korea's Banks Down In 2016

By February 26, 2017 at 9:18 pm
In 2016, banks' average daily foreign exchange turnover stood at US$48.38 billion, compared to 48.43 billion in 2015, the Bank of Korea said. (Photo : Korea Portal)

The Bank of Korea said Monday that the daily foreign exchange turnover by both foreign and local banks in the country fell 0.1 percent last year from 2015.

Last year's average daily foreign exchange turnover stood at US$48.38 billion, a decline from the $48.43 billion in 2015, the central bank said. The daily trading volume of FX spots came at $19.43 billion last year, a decline of 2.7 percent from 2015.

In the third quarter, the daily foreign exchange turnover by foreign and local banks in South Korea fell 5.5 percent from the previous three months due to lower volatility in the foreign exchange market, according to the BOK.

In the July to September period, the average daily FX turnover stood at $46.71 billion, compared to $49.44 billion in the second quarter. The daily trading volume of foreign exchange spots fell to $19.21 billion in the third quarter, down 3.6 percent from the previous period, the central bank said.

In terms of currency type, the daily turnover of the US dollar and the Korean won reached $14.52 billion last year, while the trading volume for the Chinese yuan and the won came at $2 billion during the same period. 

In the three-month period through September last year, the daily volume for dollar-won trading slid 1.6 percent to $14.37 billion while the daily turnover for yuan-won trading fell 4.4 percent to $2.13 billion during the same period.

In December 2014, China and South Korea started a yuan-won direct exchange market. The neighboring countries launched direct trade between their currencies in South Korea.

In December last year, the two countries agreed to launch direct trading of the yuan and won within China by the end of June this year, explaining this will boost trade and investment.

Monday's report also showed that the average daily foreign exchange derivatives turnover stood at $28.95 billion for the full-year 2016, a slight increase of 1.7 percent from 2015.

In the third quarter last year, daily turnover for foreign exchange derivatives averaged $27.5 billion, a decline of 6.8 percent from the previous three months, according to the BOK. 

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