Daily FX turnover hits all-time high in 2022 amid market volatility
SEOUL, Jan. 27 (Yonhap) — Daily foreign exchange (FX) trading by banks in South Korea hit an all-time high in 2022 on increased demand from cross-border trading and transactions of currency-related derivatives amid heightened market volatility, central bank data showed Friday.
The daily FX turnover, including trading of derivatives, came to an average of US$62.38 billion last year, compared with $58.31 billion the previous year, according to the data from the Bank of Korea (BOK).
It marked the largest turnover since relevant data started to be compiled under the current revised statistic standards in 2008.
The growth stemmed from increased exchange demand for exports and imports, and a rise in trading of derivatives driven by heightened FX market volatility.
South Korea’s FX market suffered increased volatility last year, with the local currency exceeding 1,400 won against the U.S. dollar in September for the first time since 2009, though it gained some ground later in the year.
The daily average turnover on the spot FX market reached $23.13 billion last year, up 1.8 percent from a year earlier. The figure for FX derivatives also expanded 10.3 percent to $39.25 billion, the data showed.
A screen in the dealing room of Hana Bank in Seoul shows the South Korean currency trading at 1,344.3 won against the U.S. dollar during an early morning session on Aug. 29, 2022, down 13 won from the previous session, following Wall Street’s nosedive due to Fed Chair Jerome Powell’s Jackson Hole speech three days prior. (Yonhap)
kokobj@yna.co.kr
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