$40 million from the previous quarter… “The impact of increased exchange rate volatility”
The average daily foreign exchange transaction in the last quarter recorded a record high for two months in a row due to the influence of the recent strong dollar and the exchange rate fluctuating significantly.
According to the Bank of Korea on the 25th, the average daily foreign exchange transactions (spot exchange and foreign exchange derivatives transactions) at foreign exchange banks in the second quarter of this year (April to June) was $65.59 billion.
This is an increase of $40 million (0.1%) from the previous quarter ($65.55 billion), which was the highest recorded since the statistics reform in 2008.
The BOK explained that it was “the effect of increased exchange rate volatility despite the reduction in the scale of imports and exports.”
The exchange rate volatility, which is calculated by calculating the daily average rate of change of the KRW/USD exchange rate from the previous day, was calculated as 0.46% in the second quarter, which is 0.11 percentage points (p) higher than in the previous quarter.
Looking at the quarter-on-quarter increase by product, spot exchange transactions ($25.05 billion) increased by $90 million (0.4%), while foreign exchange derivatives transactions ($405.04 billion) decreased by $50 million (-0.1%).
Among foreign exchange banks, foreign exchange transactions at domestic banks increased by US$470 million (1.7%) to US$28.03 billion, and foreign bank branches decreased US$420 million (-1.1%) to US$37.57 billion.
/yunhap news
