FOREIGN EXCHANGE | Tim Charlton, Korea

South Korean banks' daily FX turnover tumbled 12.4% in Q2

Values were hit due to the cut in transactions and fluctuations in exchange rates.

The daily foreign exchange (FX) turnover of banks in South Korea dropped sharply in Q2 compared to three months early, reports Yonhap News Agency, based on data from the central bank.

The daily FX turnover came to an average of $52.02b in the April-June period, down 12.4% from a daily average of $59.37 billion in the first quarter, according to the data from the Bank of Korea (BOK).

Such a drop is "largely attributed to a cut in transactions of FX derivatives, whilst fluctuations in foreign exchange rates slowed and the outflow of foreign stock investment funds narrowed," the BOK said in a press release.

The daily average fluctuation in the won-dollar exchange rate came to 5.5 won per dollar in Q2, compared with 8 won in the January-March period.

During the same quarter, foreign investors net sold $8.03b worth of South Korean stocks, down from $13.33b in Q1.

The average daily turnover of foreign exchange spots came to $20.32b in the three months ended June 30, down $790m or 3.8% from three months earlier.

Meanwhile, the daily average of FX derivatives tumbled 17.1% to $31.7b over the cited period, noted BOK.

By bank, the daily turnover by local lenders dipped 5.8% on-quarter to $24.5b, whilst transactions handled by local branches of foreign banks dropped 17.6% to $27.45b.

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