Much More to Global US$7.5 Trillion FX Turnover Story - BIS Triennial Central Bank FX Survey
(7 November 2022 – Global) The Bank for International Settlements (BIS) has released its latest 2022 Triennial Central Bank Survey, showing trading in OTC foreign exchange (FX) markets reached US$7.5 trillion per day in April 2022, up 14 percent from 2019.
The long running research first undertaken in 1986 is the most comprehensive source of information on the size and structure of global over-the-counter (OTC) markets in FX and interest rate derivatives The Survey seeks to increase the transparency of OTC markets, helping central banks and market participants monitor global financial markets, and to inform discussions on reforms to OTC markets.
Turnover of FX swaps accounted for over half of all global turnover, up from 49 percent in 2019. The share of spot trades fell to 28 percent from 30 percent in 2019, and that of outright forwards remained unchanged at 15 percent. Overall, inter-dealer trading reached 46 percent of global turnover in April 2022, a higher share than in previous rounds of reporting.
The USD was on one side of 88 percent of all trades, unchanged from 2019. The share for the EUR decreased marginally to 31 percent and those for the JPY and GBP remained unchanged at 17 percent and 13 percent, respectively. The RMB share rose to seven percent, making it the fifth most traded currency in 2022, up from eighth place in 2019 with a four percent share.
“FX turnover growth was entirely due to higher inter-dealer activity rather than turnover with customers, with remains largely the same. Swaps remain the most traded FX instrument. The USD retained its dominant status while the Chinese currency has risen to become the fifth most traded currency“ commented Patrick McGuire, Head of International Banking and Financial Statistics.
“Trading in five jurisdictions including the United Kingdom, the United States, Hong Kong SAR, Singapore and Japan represented over three quarters of all FX trading noting trading activity in the United States and Singapore grew by more than the global average” McGuire added.
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