The Bank of Korea announced on Oct. 25 that the average daily foreign exchange trading volume of foreign exchange banks was US$56.1 billion in the third quarter of this year, down US$1.52 billion from the previous quarter.
The volume fell in that quarter after an increase in the first and second quarters. The Bank of Korea explained that the decline was because of a decrease in spot exchange and derivative foreign exchange trading.
Specifically, the spot exchange trading totaled US$19.65 billion, down 3.2 percent from the previous quarter. The won-dollar trading fell by US$860 million to US$13.39 billion whereas the won-yuan trading and the yen-dollar trading increased by US$290 million and US$40 million to US$2.57 billion and US$690 million, respectively.
The spot exchange trading carried out by South Korean banks decreased by US$130 million to US$10.99 billion and that conducted by foreign bank branches decreased by US$520 million to US$8.66 billion.
The derivative foreign exchange trading added up to US$36.45 billion with a quarter-on-quarter decline of US$870 million. The futures trading fell by US$230 million to US$12.64 billion and the swap trading fell by US$510 million to US$22.43 billion.