From BigGo Finance · BigGo Finance · · 1m 30s
Offshore NDF Trading Drops 8% in Two Months
South Korea's offshore won trading volume falls 8% as 24-hour won trading launches.
In brief
South Korea's offshore won trading volume falls 8% as 24-hour won trading launches. South Korea's offshore non-deliverable forward trading volume dropped 8% in two months after 24-hour won trading began. Originally reported by BigGo Finance.
Offshore NDF Trading Volume Drops
Non-residents' average daily offshore non-deliverable forward trading volume fell from $24.74 billion in July to $22.78 billion in September.
24-Hour Won Trading Launched
South Korea introduced 24-hour won trading on July 6, shifting overnight trading to domestic markets.
NDF Positioning Flips to Net Selling
Non-residents shifted from net purchases of $26.9 billion to net sales of $30.7 billion in Q3.
Won-Dollar Exchange Rate Falls
Won-dollar exchange rate dropped from ₩1,424 at end-July to ₩1,352.8 at end-September.
Interbank Trading Volume Rises
Interbank average daily foreign exchange trading rose $2.25 billion to $55.65 billion quarter-on-quarter.
Corporate Forward Selling Declines
South Korean corporations' forward exchange net selling narrowed from $17.4 billion to $4.5 billion.
Market Analysts Caution
Analysts say two months of declines aren't enough to confirm a structural shift in trading patterns.
Exchange Rate Volatility Increases
Won-dollar exchange rate daily fluctuation range widened to 0.52% in September.
Key Market Indicators
Q3 showed interbank trading up $2.25 billion, corporate net selling down $12.9 billion, and NDF trading up $960 million.
What Happens Next
Market participants will watch if the trend persists as 24-hour won trading impacts offshore trading.
The main idea
South Korea's offshore non-deliverable forward trading volume dropped 8% in two months after 24-hour won trading began.
