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.Â
- As in previous surveys, currencies of emerging market economies (EMEs) again gained market share, reaching 25% of overall global turnover.Â
- While the volume of spot trades increased relative to April 2016, the expansion was less strong compared with other instruments â€“ hence the share of spot trades continued to fall, to 30% in 2019, compared with 33% in 2016.Â
- FX trading with â€œother financial institutionsâ€, ie those other than reporting dealers, again exceeded inter-dealer trading volumes, reaching $3.6 trillion in April 2019, or 55% of global turnover.Â
- In April 2019, sales desks in five countries â€“ the United Kingdom, the United States, Hong Kong SAR, Singapore and Japan â€“ facilitated 79% of all foreign exchange trading.Â