FX trading dips from a high in Q3

Korean banks’ daily foreign exchange trading volume declined in the third quarter from an over-4 year high in the second quarter amid weak exports, the central bank said yesterday.

The daily foreign exchange trading volume among banks averaged $21.67 billion in the July-September period, down 4.6 percent from three months earlier, according to the Bank of Korea.

In the second quarter, the FX turnover rose to the highest level in more than four years.

Daily transactions of foreign exchange spots fell 7.7 percent on-quarter to $9.23 billion, and FX swaps inched down 2 percent to $1.32 billion, according to the BOK. Korea’s exports, a backbone of the economy, fell for the third straight month in September, hit by the protracted euro zone debt crisis and China’s slowing economy.

In the third quarter, the value of exports declined 5.6 percent on-year to $133.4 billion, while imports fell 7.1 percent to $125.4 billion.

Meanwhile, the volatility of the Korean currency eased in the third quarter, marking the lowest rate of change in almost five years.

Yonhap