Daily FX turnover hits all-time high in 2023 on increased securities trading

January 26, 2024

Daily foreign exchange trading by banks in South Korea hit an all-time high in 2023 on increased stock trading by local and foreign investors despite decreased exports, central bank data showed Friday.

The daily FX turnover, including trading of derivatives, came to an average of US$65.96 billion last year, compared with $62.38 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 increased turnover stemmed from increased exchange demand from stock investors, including residents, although exports and imports declined last year.

The country’s trading volume reached $1.275 trillion last year, down from $1.415 trillion the previous year.

Foreign investors’ monthly trading of Korean stocks and bonds stood at 209 trillion won (US$156 billion) in the first 11 months, up from 183 trillion won over the cited period, according to the central bank.

The daily average turnover on the spot FX market reached $25.81 billion last year, up 11.6 percent from a year earlier. The figure for FX derivatives also expanded 2.3 percent to $40.15 billion, the data showed.