FX Market Liquidity improved in the June Quarter 2021, with FX market turnover rising 19.7%.
According to the BSP Pacific Economic & Market Insights Quarter 2 Report, FX market liquidity improved in the June Quarter 2021, with market turnover rising 23.9% in June and 19.7% in the June Quarter 2021.
BSP Group General Manager - Treasury Rohan George commented, “FX inflows for the 1st half 2021 were up 1.8% from one year ago. Reduced foreign currency supplied to the market from Barrick was offset by firmer copper and palm oil prices, combined with increased project specific and donor foreign currency inflows.”
The Kina is likely to remain stable against the U.S. dollar, while a steady Australian dollar will see improved stability in the Kina/Australian dollar cross rate.
Mr George noted “FX market turnover may well fall in the September Quarter from the high levels seen mid-year. Outstanding FX orders reduced by 60% over the June Quarter, due to strong foreign currency inflows, however as FX inflows taper in July, August outstanding FX orders build up again.”