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Daily FX turnover hits record high in Q1 on rising investment, hedging

April 25, 2025

Daily foreign exchange (FX) trading by banks in South Korea reached an all-time high in the first quarter of 2025 on increased demand from cross-border trading and the volatile won-dollar exchange rate, central bank data showed Friday.

The daily FX turnover, including trading of derivatives, came to an average of US$72.76 billion during the January-March period, up 7.4 percent from $67.73 billion a year earlier, according to the data from the Bank of Korea (BOK).

It marked the largest figure since the central bank began compiling relevant data under the current statistic standards in 2008.

The growth was attributable to an increase in foreigners’ investment in domestic securities, as well as rising currency exchange demand for hedging amid high market volatility, according to the BOK.

The daily average turnover for FX derivatives rose 6.5 percent to $44.81 billion in the first quarter, while the figure on the spot FX market advanced 9 percent to $27.94 billion, the data showed.

This file photo taken Dec. 19, 2024, shows a clerk checking U.S. dollar notes at a center of Hana Bank in Seoul. (Yonhap)
This file photo taken Dec. 19, 2024, shows a clerk checking U.S. dollar notes at a center of Hana Bank in Seoul. (Yonhap)