FX volumes increase according to BIS

The latest triennial FX survey published by the Bank for International Settlements (BIS) has revealed that overall trading volumes in foreign exchange markets rose

September, 2019

FX volumes increase according to BIS

 

Source: BIS Triennial Central Bank Survey. Foreign exchange market turnover by instrument. Net-net basis, daily averages in April

 

 

The latest triennial FX survey published by the Bank for International Settlements (BIS) has revealed that overall trading volumes in foreign exchange markets rose to a worldwide daily average of $6.6 trillion this year, a 30% increase on the $5.1 trillion figure from 2016. Key highlights from the survey include:

  • Trading in FX markets reached $6.6 trillion per day in April 2019, up from $5.1 trillion three years earlier. Growth of FX derivatives trading, especially in FX swaps, outpaced that of spot trading.
  • The US dollar retained its dominant currency status, being on one side of 88% of all trades. 
  • As in previous surveys, currencies of emerging market economies (EMEs) again gained market share, reaching 25% of overall global turnover. 
  • While the volume of spot trades increased relative to April 2016, the expansion was less strong compared with other instruments – hence the share of spot trades continued to fall, to 30% in 2019, compared with 33% in 2016. 
  • FX trading with “other financial institutions”, ie those other than reporting dealers, again exceeded inter-dealer trading volumes, reaching $3.6 trillion in April 2019, or 55% of global turnover. 
  • In April 2019, sales desks in five countries – the United Kingdom, the United States, Hong Kong SAR, Singapore and Japan – facilitated 79% of all foreign exchange trading.