The average daily foreign currency transaction during the first quarter of this year expanded by more than nine percent compared to the previous quarter.

According to the Bank of Korea(BOK) on Friday, the average daily foreign exchange turnover stood at 69-point-four billion U.S. dollars in the January to March period, up nine-point-six percent from the fourth quarter last year.

The central bank cited a base effect of reduced fourth-quarter trading from the year-end closing of the books, increased exchange demand from stock investors and increased hedge demand against currency volatility.
 
Of the average daily volume of turnover, there were 26-point-one billion dollars worth of spot exchange trading, up seven-point-nine percent from three months earlier, and 43-point-three billion dollars worth of foreign exchange derivatives, up ten-point-seven percent.

Turnover at local banks rose one-point-seven percent on-quarter to over 31-billion dollars, compared to that of local branches of foreign banks, which jumped 17 percent to 38-point-three billion dollars.