Won Interbank Volumes Drop in Q3

The South Korean Won's interbank trade volumes suffered declines as traders continue to play the safety game amid uncertainty with the Eurozone. Trade volumes weakened by 4.6% in the third quarter, the global trend highlights difficulty for the FX markets.

The daily average FX turnover in the inter-bank market amounted to $21.67 billion (US dollars) during the July-September period, down 4.6 percent from three months earlier, according to the countries central bank.

The Korean Won is trading at 1,110.50 against the greenback.

The fall in volumes comes on the back of declining external trade. Both exports and imports contracted during the quarter due to the prolonged European fiscal crisis and the consequent global economic slowdown.

The daily turnover of FX spots contracted 7.7 percent on- quarter to $9.23 billion (US dollars) in the third quarter, and the trading volume of FX Swaps Swaps Swaps can be defined as a derivate contact composed of two parties that exchange to cash flow between two separate financial instruments.They are generally divided into two categories. This includes contingent claims (options) and forward claims, where forward contracts, swaps, and exchange-traded funds (ETFs) are exchanged. Commodity price, equity price, interest rate, and foreign exchange rate are common variables used as one of the cash flows in swaps upon initiation. Different Types of Swaps Swaps can be defined as a derivate contact composed of two parties that exchange to cash flow between two separate financial instruments.They are generally divided into two categories. This includes contingent claims (options) and forward claims, where forward contracts, swaps, and exchange-traded funds (ETFs) are exchanged. Commodity price, equity price, interest rate, and foreign exchange rate are common variables used as one of the cash flows in swaps upon initiation. Different Types of Swaps Read this Term reduced 2.8 percent to $10.95 billion dollars. The volume of other derivative products such as cross currency swaps and Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term options retreated 2 percent to $1.32 billion (USD) over the cited period, but the foreign exchange forwards trading increased 62.2 percent to $170 million (US dollars).