With the Increase of Seohak Ants... Last Year's Daily Average Forex Trading Volume Hits Record High

Last year, as more Koreans invested in overseas stocks, the domestic foreign exchange transaction volume reached an all-time high.

According to the "2023 Mid-Year Foreign Exchange Bank Transaction Trends" announced by the Bank of Korea on the 26th, the average daily foreign exchange transactions (spot exchange and foreign exchange derivatives transactions) of foreign exchange banks last year amounted to $65.96 billion.

This is an all-time high, increasing by $3.57 billion (5.7%) compared to the previous year's record of $62.38 billion.

The average daily spot exchange transaction volume last year was $25.81 billion, up $2.67 billion (11.6%) from the previous year. This is attributed to an increase in currency exchange transactions as domestic investors investing in overseas stocks grew.

According to the Korea Securities Depository, as of the end of last year, the amount of foreign securities held by domestic investors was $104.19 billion, a 35.9% increase compared to the previous year. This is analyzed as being caused by increased overseas investment.

By currency, won-dollar transactions amounted to $18.51 billion, up 6.9% from the previous year. By bank, domestic banks' transactions increased by 19.9% to $14.71 billion, and foreign bank branches' transactions rose by 2.1% to $11.1 billion.

The average daily foreign exchange derivatives transaction volume last year was $40.15 billion, an increase of $0.9 billion (2.3%) compared to the previous year. Forward exchange transactions increased by 5% year-on-year, centered on NDF (Non-Deliverable Forward) transactions, and foreign exchange swap transactions increased by 1.8% year-on-year, mainly involving transactions between foreign exchange banks and non-residents.

A Bank of Korea official said, "Despite a decrease in export and import volumes last year, the average daily foreign exchange transaction volume reached an all-time high due to increased securities trading by residents and foreigners."