As overseas stock investments by our citizens have increased, the scale of domestic foreign exchange transactions in the third quarter reached an all-time high.
According to the "Foreign Exchange Transactions Trends of Foreign Exchange Banks in the Third Quarter" announced by the Bank of Korea on the 25th, the average daily foreign exchange transactions (spot exchange and foreign exchange derivatives transactions) of foreign exchange banks in the third quarter amounted to $70.91 billion, an increase of $3.12 billion (4.6%) compared to the previous quarter. This transaction volume is the highest since the related statistics were reorganized in 2008.
The Bank of Korea explained that the increase in foreign exchange transaction volume was due to the growth in import and export volumes in the third quarter, expansion of transactions related to residents' overseas securities investments and foreigners' domestic securities investments, and the extension of foreign exchange market opening hours.
In particular, the biggest impact came from the surge in foreign currency securities settlement amount by domestic investors, which rose from $127 billion in the second quarter to $174.7 billion in the third quarter.
By product, the spot exchange transaction volume increased by $1.67 billion (+6.8%) from the previous quarter to an average daily $26.29 billion, and the foreign exchange derivatives transaction volume increased by $1.46 billion (+3.4%) to an average daily $44.62 billion.
By bank, domestic banks' transaction volume increased by $1.45 billion (+4.8%) from the previous quarter to $31.57 billion, while foreign bank branches' transaction volume increased by $1.68 billion (+4.5%) to $39.34 billion.
By currency, won-dollar transactions increased by $1.58 billion (+8.4%) to $20.51 billion. The average daily foreign exchange derivatives transaction volume increased by $1.46 billion (+3.4%) to $44.62 billion compared to the previous quarter.
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