Banks' daily FX turnover hits near 3-year high in Q2

SEOUL, Aug. 25 (Yonhap) -- Foreign exchange turnover by banks in South Korea rose to the highest level in nearly three years in the second quarter as exports remained solid amid the economic recovery, the central bank said Thursday.
   The daily foreign exchange turnover averaged US$47.9 billion in the April-June period, up 3.5 percent from three months earlier, according to the Bank of Korea (BOK).
   The second-quarter reading marked the largest amount since $50.6 billion in the third quarter of 2008, right before the global financial markets were hit by the collapse of Lehman Brothers.
   "South Korea's trade remained solid and foreign investors expanded investment in local bonds and stocks, raising demand for the won conversion," said a BOK official.
   The daily trading volume of spots advanced 8.7 percent on-quarter to $20 billion in the second quarter as exports firmed up, the BOK said. The second-quarter reading marked the highest since $20.8 billion in the third quarter of 2008.
   In the cited period, the volume of South Korea's exports and imports reached $278.8 billion, up from $249.5 billion three months earlier.
   The daily foreign exchange turnover of forwards rose 4.3 percent to $7.43 billion while that of foreign exchange swaps fell 1.5 percent to $19.4 billion.
   sooyeon@yna.co.kr
(END)