BOK Shin: Extended trading hours of dollar-won market has not impacted trading volume of NDF market by much

The Bank of Korea (BOK) has noted that the recent extension of trading hours for the dollar-won market has not significantly affected the trading volume in the non-deliverable forward (NDF) market. According to the BOK, the adjustment was intended to enhance liquidity and accommodate international trading patterns, but the NDF market has remained largely unaffected in terms of volume and activity levels.

The dollar-won market, which facilitates foreign exchange transactions involving the Korean won and the U.S. dollar, has seen increased participation due to the extended hours. However, the NDF market, which is used to hedge against currency fluctuations in markets where direct trading is restricted, has not shown a corresponding shift in behavior. Analysts suggest that this may be due to the structural differences between markets and the established hedging strategies of participants.

The BOK continues to monitor the situation closely, emphasizing that the primary objective remains the stability and efficiency of the foreign exchange market.