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S. Korea's daily FX turnover dips 5% last year amid won's gain

This file photo, taken on March 18, 2020, shows a Hana Bank official in Seoul inspecting US banknotes before their release into the local financial market. (Yonhap)
This file photo, taken on March 18, 2020, shows a Hana Bank official in Seoul inspecting US banknotes before their release into the local financial market. (Yonhap)
The daily foreign exchange (FX) trading by banks in South Korea fell 5.3 percent on-year in 2020 as the local currency rose against the US dollar, central bank data showed Thursday.

The daily FX turnover came to an average $52.8 billion last year, down $2.93 billion from the previous year, according to the data by the Bank of Korea (BOK).

The BOK said the drop in the daily FX turnover came as the won's gain reduced demand to hedge risks with FX derivative trading.

The Korean currency appreciated 6.5 percent to the greenback last year.

The average daily turnover of foreign exchange spots reached $20.3 billion last year, up 2.5 percent from a year ago, on the back of an increase in foreign stock investments. The daily average FX derivatives fell 9.5 percent on-year to $32.5 billion.

By bank, the daily turnover by local lenders declined 5 percent on-year to $24.8 billion, while transactions handled by local branches of foreign banks fell 5.5 percent to $28.1 billion, the BOK said. (Yonhap)

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