In the first week after the Seoul foreign exchange market switched to a "24-hour transaction" system, volume rose 5.4%. Although seven hours (41%) were added to the previous 17-hour transaction day, volume did not increase in proportion.
According to the Seoul foreign exchange market on the 13th, from the 6th to the 10th, when 24-hour transaction began, spot transaction volume was $60,562,000,000. That was an increase of $3,111,000,000 (5.41%) compared with the previous five transaction days (June 29–July 3), when volume was $57,451,000,000.
The increase in volume after the Seoul foreign exchange market shifted to a 24-hour transaction system amounts to only 20% of the average daily volume ($15,550,000,000) in the offshore non-deliverable forward (NDF) market in the first quarter of this year. The effect of transactions conducted outside the foreign exchange market being largely absorbed into the market has not yet appeared. In the NDF market, contracts are settled in dollars based on the exchange rate difference before and after the contract without actually exchanging won.
During the same period, the won's exchange rate against the U.S. dollar (won-dollar rate) also saw a wider trading range (the difference between the high and the low). Over the first five transaction days after 24-hour transaction began, the average daily exchange rate range was 14.8 won, larger than the 11.8 won in the previous five transaction days.
On this, an official at the foreign exchange authorities said, "Because the NDF market has developed over a long period, it is difficult for transaction practices to change suddenly," and noted, "We need to watch for more than a month over the longer term." On the expansion of the exchange rate range, the official also said, "It seems early to judge now."
Meanwhile, transaction hours in the Seoul foreign exchange market have been extended in two stages. Until June 2024, transactions began at 9 a.m. and ended at 3:30 p.m. Then starting July 1, 2024, transaction hours were extended until 2 a.m. the next day. Now, under a 24-hour transaction system, transactions take place from 6 a.m. Monday to 6 a.m. Saturday.