| Updated: August 29, 2024Forex is the most liquid and heavily traded market on the planet, outstripping all other markets with an average trading volume of $7.51 trillion per day. Several factors contribute to this unrivaled turnover, starting with the fact the forex market is open 24 hours a day, 5 days a week. Additionally, currency pairs are traded over the counter, which means most transactions take place on electronic networks or over the telephone between brokers, banks, retail traders, and other market participants.
Interested in delving into more statistics on the world’s most liquid market and its daily turnover? Join us as we examine how the average trading volume of the global forex market has changed over the years, what the most traded forex instruments and currencies are, and which countries rank first by average daily turnover. We pulled data from authoritative sources to deliver accurate and comprehensive statistical information to readers interested in gaining deeper insights into the global forex trading landscape.
Daily Trading Volume of Global Forex Market
The Bank for International Settlements conducts comprehensive global surveys once every three years to measure the daily turnover of foreign exchange transactions worldwide. The latest survey results reveal the average daily trading volume of the global forex market hit an all-time high in April 2022 when it reached $7.51 trillion. The figure represents a 14.1% increase from three years back when daily trading volume stood at $6.58 trillion.
Average trading volume has been consistently rising during the past two decades, jumping by nearly 506% between 2001 and 2022. The biggest spike occurred in 2004 when currency trading jumped by over 56% from the previous three years.
A decrease was only observed in 2016 when trading in the forex market averaged $5.07 trillion, down 5.4% from the previous triennial survey when it stood at around $5.36 trillion. This was the first market shrinkage in 15 years, and some analysts ascribed it to the significant drop in spot forex transactions and the rising interest in derivative trading during this period.
Average Daily Trading Volume of Global Forex Market from 2001 to 2022 (in bn USD)
Source: Bank for International Settlements Triennial Surveys (2001-2022)
Daily Forex Trading Volume by Instrument
Spots and forex swaps consistently attract the highest trading activity out of the five main instrument groups. Foreign exchange swaps accounted for $3.81 trillion (51%) of the total trading volume of the global forex market in 2022, seeing an increase of two percentage points from three years earlier. All data considered, swap trading volume grew by 481% from 2001 when it stood at $655.9 billion only. Many market participants rely on forex swaps for risk hedging and liquidity, hence their massive daily averages.
The daily volume of spot trading activities averaged $2.10 trillion in 2022, up 233% from the previous survey period. The figure accounts for 28% of the overall daily average of the market. The only decline in spot trading occurred in 2016 when average daily volumes dropped by 19.5% from $2.05 trillion to $1.65 trillion.
Outright forwards are the third most traded instrument on the forex market, seeing a 793% increase in trading activity from 2001 to 2022. Their average daily turnover peaked at $1.16 trillion in 2022, marking a rise of approximately 17% from three years earlier.
Options are the fourth most traded instrument on the global forex market as of 2022. They attracted $304.3 billion in total daily turnover for a 2.1% increase from 2019 and a 4% share of the global trading volume. Currency swaps consistently rank as the least traded forex instrument with a 2% market share and around $124 billion in daily average volume in 2022. As unimpressive as it seems, this figure marks a dramatic increase from 2001 when the trading volume of currency swaps was a negligible $7.2 billion.
Average Forex Trading Volume by Instrument (in bn USD)
Source: Bank for International Settlements Triennial Surveys (2001-2022)
Daily Trading Volume by Currency
As many as 180 currencies are currently in circulation across 195 countries on the planet but ten of them generate the largest portion of the daily trading volume of the global foreign exchange market. The US dollar ranks as the most heavily traded currency worldwide, with a daily average surpassing $6.6 trillion. The greenback, as the world’s reserve currency is commonly known, was on one side of 88.5% of all currency transactions in April 2022, continuing its long-standing dominance in the forex market.
The euro is the currency with the second-largest daily average of $2.29 trillion for a 31% market share, followed by the Japanese yen ($1.25 trillion), the pound sterling ($968 billion), and the Chinese renminbi ($526 billion). Continue reading for more detailed information on these top-performing currencies.
Daily Trading Volume by Currency (in bn USD)
Source: Bank for International Settlements (2022 Triennial Survey)
US Dollar
- Daily trading volume in April 2022: $6,639 billion (↥14% from $5,811 trillion in 2019)
- Share of global market turnover: 88.5% (88.3% in 2019)
- Forex swaps volume: $3,457 billion per day (↥19% from 2019)
- Spot trading volume: $1,807 billion per day (↥8% from 2019)
- Outright forwards: $993.6 billion per day (↥13% from 2019)
- Options: $265.2 billion (↥8% from 2019)
- Currency swaps: $115.9 billion (↥14% from 2019)
First introduced in 1792, the US dollar dethroned the pound sterling as a global reserve currency in 1944 after the Bretton Woods Agreement was signed in New Hampshire. As many as $2.33 trillion are in circulation as of September 2023, according to official Federal Reserve data. The USD presently serves as the national currency of 11 countries other than the United States, including Panama, Micronesia, Zimbabwe, El Salvador, and Ecuador. Most of its overall daily trading volume in 2022, or roughly $3.46 trillion came from forex swaps, followed by spot trades with $1.81 trillion and outright forwards with $993.6 billion.
Euro
- Daily trading volume in April 2022: $2,292 billion (↥8% from $2,126 billion in 2019)
- Share of global market turnover: 30.5% (32.3% in 2019)
- Forex swaps volume: $1,263 billion (↥11% from 2019)
- Spot trading volume: $616.1 billion (↥0.1% from 2019)
- Outright forwards: $285.9 billion (↥13% from 2019)
- Options: $91.4 billion (↥0.7% from 2019)
- Currency swaps: $36.2 billion (↥39% from 2019)
The euro is the second most traded currency on the forex market, recording daily averages of $2.29 trillion in April 2022 for an 8% rise from the previous three years. The currency has been adopted by 20 member states of the European Union, including some of the world’s largest economies like Germany, France, and Italy. It went on to establish itself as the second largest reserve currency on a global scale, accounting for almost 20% of the allocated forex reserves at the end of 2023.
The euro stood on one side of 16.7% of all forex trades in April 2022, exhibiting a modest decrease in share from three years earlier. The largest portion of the euro’s daily trading volume comes from foreign exchange swaps and spot trading, which generated a combined turnover of $1.88 trillion per day. Currency swaps were the worst-performing instrument for the euro as they recorded a little over $36 billion in average daily trading volume.
Japanese Yen
- Daily trading volume in April 2022: $1,253 billion (↥13% from $1,108 billion in 2019)
- Share of global market turnover: 16.7% (16.8% in 2019)
- Forex swaps volume: $557.3 billion (↥8% from 2019)
- Spot trading volume: $439 billion (↥22% from 2019)
- Outright forwards: $182.9 billion (↥26% from 2019)
- Options: $59.7 billion (↧6% from 2019)
- Currency swaps: $14.4 billion (↧40% from 2019)
First introduced in 1871, the Japanese yen has established itself as a major player in the global forex market with a market share close to 17%. Low inflation and interest rates fuel the increasing demand for this currency, along with its value. The yen has also cemented its position as a leading reserve currency as it claimed a 5.70% share of all allocated forex reserves in the fourth quarter of 2023.
Unsurprisingly, the yen places third by daily trading volume after the euro and the US dollar. Overall daily turnover for this currency increased by 13% in 2022 and averaged $1.25 trillion, with most of this amount coming from forex swaps and spot trading, both of which rose compared to three years earlier. Options and currency swaps involving the euro exhibited decreases in daily trading volume, dropping by 6% and 40%, respectively.
Pound Sterling
- Daily trading volume in April 2022: $968 billion, ↥15% from $843 billion in 2019
- Share of global market turnover: 12.9% (12.8% in 2019)
- Forex swaps volume: $560.2 billion (↥26% from 2019)
- Spot trading volume: $231 billion (↧4% from 2019)
- Outright forwards: $136.1 billion (↥25% from 2019)
- Options: $23.1 billion (↧28% from 2019)
- Currency swaps: $17.8 billion (↧7% from 2019)
The pound sterling takes fourth place in terms of daily trading volume, with an average turnover of $968 billion, a 15% increase from 2019. In 2022, the sterling saw increases in forwards and forex swap turnover but recorded lower trading volumes for all other instrument categories. Sterling options exhibited the steepest decline as daily averages fell by approximately 28%, from $31.95 billion to $23.1 billion.
Officially introduced in the year 760, the sterling is regarded as the oldest currency still in circulation. It serves as the national currency of the United Kingdom but is also used in several of its dependencies and overseas territories, including the Isle of Man, Guernsey, Jersey, Gibraltar, and South Georgia and the South Sandwich Islands. The sterling ranks fifth in terms of allocated foreign exchange reserves with a 4.84% share in the last quarter of 2023.
Chinese Renminbi
- Daily trading volume in April 2022: $526.2 billion, ↥85% from $285 billion in 2019
- Share of global market turnover: 7% (4.3% in 2019)
- Forex swaps volume: $230.6 billion (↥68% from 2019)
- Spot trading volume: $175 billion (↥81% from 2019)
- Outright forwards: $65.2 billion (↥83 % from 2019)
- Options: $52.7 billion (↥274% from 2019)
- Currency swaps: $2.7 billion (↥73% from 2019)
The Chinese renminbi (CNY) accounted for 7% of all forex transactions in April 2022 and generated an average of $526 billion in daily turnover, ranking as the fifth most traded currency in the world during this period. The currency is used as legal tender for domestic transactions in mainland China and is not to be mistaken with the offshore CNH traded outside the country.
The CNY witnessed the most impressive growth out of the ten most traded currencies in 2022 as its daily average increased by a whopping 85% from $285 billion in 2019 when it ranked eighth in terms of volume. Its strong growth was driven by the increase in portfolio investment during this period.
The currency posted volume increases across all five instrument groups, with daily turnover for CNY options rising by 274% from 2019. Foreign exchange swaps in the renminbi accounted for the largest portion (44%) of the daily average in April 2022.
Daily Trading Volume by Currency Pair
Hundreds of currency pairs are traded on the forex market but only ten of them contribute significantly to the average turnover generated each day. The ten most traded pairs account for approximately 73% of the overall daily trading volume of the world’s most liquid market. Eight of these leading pairs involve the US dollar traded against other major currencies like the euro, the sterling, and the yen.
The EUR/USD, which pits two of the world’s strongest currencies against each other, boasts the largest share of the market’s total daily trading volume and accounts for 22.7% of all daily forex transactions. Despite its undisputed market dominance, the EUR/USD has experienced a nominal decline in share since 2019 when it accounted for 24% of the daily trading volume.
The USD/JPY is the pair with the second largest share (13.5%) of the total daily turnover for a nominal increase of 0.3 percentage points since 2019. The third spot is reserved for USD/GBP with a 9.5% share, followed by USD/CNY with 6.6% and USD/CAD with 5.5%.
The euro pitted against the sterling is the tenth most traded pair whose 2% share remains unchanged from 2019. All data considered, only three of the ten leading pairs exhibited decreases in daily volume share. The USD/HKD experienced the steepest decline, with its share falling by 0.9 percentage points from April 2019.
Leading Currency Pairs by Share in Daily Trading Volume
Source: Bank for International Settlements (Triennial Surveys)
The ten leading currencies featured in the chart above boast a combined daily trading volume of $5.52 trillion as of April 2022. This makes for an 18% increase from the same month three years earlier when the top 10 pairs attracted trading activities valued at $4.7 trillion in total.
Turning our gaze to concrete numbers, we see the euro traded against the US dollar generates the highest turnover of $1.71 trillion per day. Daily averages for the most traded currency pair rose by approximately 8% from three years earlier when the trading volume for the EUR/USD stood at $1.58 trillion per day. This only makes sense considering the pair represents the two biggest economies on a global scale, the European Union and the United States.
Daily Trading Volume of the 10 Most Traded Currency Pairs (in bn USD)
Source: Bank for International Settlements (Triennial Surveys)
The second place on the list of forex pairs with the highest daily trading volumes is reserved for the USD/JPY, another major whose turnover increased by 16% from April 2019 to April 2022. The daily trading volume of the US dollar against the yen spiked from $871 billion to a little over a trillion during this period.
The USD/GBP is the third most traded pair with $714 billion in daily turnover, followed by the USD/CNY with $494 billion and the USD/CAD with $410 billion. Trading activity for the five most liquid currency pairs stood at $4.34 trillion per day in total, with foreign exchange swaps boasting the highest contribution of 54% ($2.38 trillion) to this amount. Here is the complete breakdown of these pairs’ daily averages for each instrument.
EUR/USD
- Daily trading volume in April 2022: $1.71 trillion, ↥7.6% from $1.58 trillion in 2019
- Share of daily trading volume: 22.7% (24% in 2019)
- Forex swap volume: $1 trillion (↥10% from 2019)
- Spot trading volume: $418.8 billion (↥0.6% from 2019)
- Outright forwards volume: $192 billion (↥10% from 2019)
- Options volume: $61.1 billion (↥6% from 2019)
- Currency swaps: $31.2 billion (↥52% from 2019)
The EUR/USD is the most heavily traded currency pair in the world, achieving a daily trading volume of $1.71 trillion for a 7.6% increase from 2019. This enormous amount represents a healthy 22.7% of the market’s overall daily average in 2022. The most significant portion of the pair’s average daily turnover came from foreign exchange swaps, which generated around $1 trillion in daily trading activity.
Transactions on the spot contributed around 25% of the pair’s total turnover with $418.8 billion in daily trading volume, followed by outright forwards with $192 billion and options with $61.1 billion. Currency swaps were apparently the least popular instrument among EUR/USD traders as they accounted for a modest 2% share of the pair’s daily average. All in all, the world’s most liquid pair exhibited triennial increases across all five instruments, with currency swaps achieving the highest growth in terms of daily trading volume.
USD/JPY
- Daily trading volume in April 2022: $1.01 trillion, ↥16.3% from $871 billion in 2019
- Share of daily trading volume: 13.5% (13.2% in 2019)
- Forex swap volume: $475.6 billion (↥10% from 2019)
- Spot trading volume: $349.7 billion (↥35% from 2019)
- Outright forwards volume: $122.1 billion (↥16% from 2019)
- Options volume: $52.6 billion (↥4% from 2019)
- Currency swaps: $13.4 billion (↧42% from 2019)
The USD/JPY places second in terms of daily trading volume with a turnover of around $1 trillion and a 13.5% market share. Market participants commonly regard it as a safe haven because it comprises two of the strongest currencies in the world, the US dollar and the Japanese yen. The second most traded pair shows a close correlation with US treasuries and hard commodities like crude oil.
It posted a 16% increase in trading volume from 2019, largely resulting from the growth in its daily averages for forex swaps, spots, and outright forwards. Forex swaps accounted for nearly one-half of the pair’s total daily turnover as trades involving this derivative contract hit $475.6 billion in April 2022. By comparison, currency swaps exhibited a 42% decline from three years earlier and accounted for a modest 1% of the USD/JPY daily turnover.
USD/GBP
- Daily trading volume in April 2022: $714 billion, ↥13.3% from $630 billion in 2019
- Share of daily trading volume: 9.5% (9.6% in 2019)
- Forex swap volume: $438.6 billion (↥25% from 2019)
- Spot trading volume: $158.7 billion (↧5% from 2019)
- Outright forwards volume: $86.7 billion (↥16% from 2019)
- Options volume: $14.2 billion (↧29% from 2019)
- Currency swaps: $15.3 billion (↧12% from 2019)
The USD/GBP placed third with a daily trading volume averaging $714 billion for a 13% increase from 2019. Traders worldwide favor this pair for its high liquidity, narrower spreads, and volatility. Commonly referred to as “trading the cable”, trading the USD/GBP accounted for 9.5% of the overall daily turnover of the forex market in 2022. The pair exhibits a strong negative correlation with the USD/CHF but correlates positively with the top-performing EUR/USD.
Foreign exchange swaps contributed around 61% to the pair’s daily trading volume, recording over $438 billion in turnover. The instrument saw a 25% increase from three years earlier when it generated $351 billion in daily trading volume. Options and currency swaps both showed decreases in daily turnover, falling by 29% and 12%, respectively.
USD/CNY
- Daily trading volume in April 2022: $494 billion, ↥83% from $270 billion in 2019
- Share of daily trading volume: 6.6% (4.1% in 2019)
- Forex swap volume: $223.8 billion (↥67% from 2019)
- Spot trading volume: $159.3 billion (↥80% from 2019)
- Outright forwards volume: $58.9 billion (↥78% from 2019)
- Options volume: $49.8 billion (↥278% from 2019)
- Currency swaps: $2.6 billion (↥70% from 2019)
The USD/CNY is apparently gaining traction among forex market participants as it climbed to the fourth place from its previous position as the eighth most traded currency. The pair measures price movements of the US dollar against the onshore renminbi used for transactions across mainland China. It places fourth in terms of daily trading volume with an average inching close to half a trillion.
Its daily turnover has nearly doubled since 2019 when the pair recorded $270 billion in daily trading volume. The USD/CNY went on to become the fastest-growing pair three years later, exhibiting an impressive turnover increase of 83%. It saw substantial increases across all five instrument groups. Options outperformed all other instruments growth-wise as their daily trading volume soared by a whopping 278% during this period.
USD/CAD
- Daily trading volume in April 2022: $410 billion, ↥42.9% from $287 billion in 2019
- Share of daily trading volume: 5.5% (4.4% in 2019)
- Forex swap volume: $237.5 billion (↥82% from 2019)
- Spot trading volume: $109.4 billion (↥4% from 2019)
- Outright forwards volume: $43.5 billion (↥23% from 2019)
- Options volume: $13.5 billion (↥47% from 2019)
- Currency swaps: $6.2 billion (↧11% from 2019)
The USD/CAD sets the US and Canadian dollars against each other and ranks as the fifth most traded currency pair in the world with an average daily volume hitting $410 billion in 2022, up by nearly 43% from the previous BIS survey period. Forex swaps in USD/CAD jumped by 82%, increasing from $130.3 billion to almost $238 billion.
Options contracts are the second-fastest growing instrument for this pair, swelling by 47% from $9.2 billion to $13.5 billion in daily turnover. Trading volume from currency swaps in USD/CAD dipped by 11% as the instrument posted $6.2 billion in daily turnover, or $746 million less than in 2019. Nicknamed the “loonie” after the common loon pictured on the CA$1 coin, the pair shows a remarkable correlation with the EUR/USD and commodities like zinc and crude oil.
Countries with Highest Daily Trading Volumes
It is anything but surprising that three of the world’s largest economies (the UK, the US, and Japan) rank among the top 5 countries with the most significant daily trading volumes. The United Kingdom captured the first place with $3.76 trillion, right behind the United States whose average daily turnover stands at $1.91 trillion as of April 2022.
Singapore places third with $930 billion, outstripping Hong Kong and Japan whose over-the-counter forex trading activity amounts to $694 billion and $433 billion, respectively. Below, we offer you a more detailed breakdown of these countries’ performance across different instruments, along with the latest volume figures they have released.
Top 5 Countries with Largest Daily Trading Volumes in 2022 (in bn USD)
Source: Bank for International Settlements
Forex swaps outperformed other financial instruments in all five countries and reported the largest trading volumes in April 2022. The United Kingdom posted the most substantial daily average of $1.95 trillion, more than double the amount reported by the United States ($997 billion).
Spot transactions placed second, with Japan recording the lowest daily average of around $205 billion. Outright forwards were the third most traded forex instrument in the top-performing countries, followed by options and currency swaps whose combined trading volume represented a modest 6% of the five country’s total turnover.
| Daily Trading Volumes by Instrument in Top 5 Countries with Largest FX Markets, April 2022 (in bn USD) | ||||||
|---|---|---|---|---|---|---|
| Country | FX Swaps | Spot Transactions | Outright Forwards | Options | Currency Swaps | Total Daily Volume |
| UK | 1945 | 997.1 | 557.3 | 175.5 | 79.7 | 3755 |
| USA | 760.2 | 711.7 | 361.5 | 71 | 7.9 | 1912 |
| Singapore | 490.3 | 230.4 | 146.4 | 56.3 | 6.1 | 930 |
| Hong Kong | 423.9 | 134.2 | 74.6 | 18.96 | 42.8 | 694 |
| Japan | 204.9 | 148.7 | 62.4 | 12.1 | 4.4 | 433 |
Daily Trading Volume of the UK Forex Market
The United Kingdom is home to a thriving foreign exchange market whose daily turnover averaged $2.93 trillion in October 2023, as the results of a semi-annual survey conducted on behalf of the Foreign Exchange Joint Standing Committee (FXJSC) reveal. This impressive figure is hardly surprising considering the country’s capital, London, dethroned New York from its position as the world’s largest financial center in 2024.
- Forex Swaps with 46% Market Share in October 2023
Trading volume in October 2023 rose by around 3% from the same month a year earlier, with forex swaps accounting for 46% of the market’s total turnover. Trading activity involving this instrument hit $1.35 trillion across the 27 financial institutions that participated in the semi-annual survey. As substantial as this figure seems, it represents a notable decline of 3 percentage points from April 2023 when forex swap daily averages accounted for 49% of the market’s turnover.
These results are also lower compared to April 2022 when the trading volume of forex swaps averaged $1.95 trillion. Spot transactions took the second place with $863 billion in daily turnover, followed by outright forwards with $339 billion and options with $173 billion.
Non-deliverable forwards and currency swaps were the least traded instruments in the UK during this period. Non-deliverable forwards posted a daily turnover of around $167 billion. Currency swaps performed even more poorly as trading activity in this instrument generated only $36 billion in daily turnover.
UK Daily Trading Turnover per Instrument in October 2023 (in bn USD)
Sources: Foreign Exchange Joint Standing Committee, Bank of England
- Most Traded Pairs in the UK: EUR/USD, GBP/USD and USD/JPY
The EUR/USD, GBP/USD, and USD/JPY retain their dominant position as the three most traded forex pairs in the country. The euro against the dollar landed on the first spot with $738 billion in turnover, representing 25% of the total daily averages for October 2023. Most of the leading pair’s turnover came from forex swap transactions ($395 billion) and spots ($191.5 billion) whose combined trading activity amounted to over half a trillion.
The title of the second most traded currency in the UK goes to the GBP/USD. Nicknamed the “Cable”, the pair attracted daily trading activities valued at $370 billion, making up 13% of the overall volume during this period. The US dollar against the yen places third with a 12% market share and a daily average of $365 billion. All in all, the results for the three leading currency pairs remained largely in line with the previous semi-annual survey in April 2023.
Daily Turnover of Top 3 Most Traded Pairs in the UK for October 2023 (in bn USD)
Source: Foreign Exchange Joint Standing Committee, Bank of England
Daily Trading Volume of US Forex Market
The forex market in the United States achieved the second-highest daily turnover in April 2022 when the volume of foreign exchange transactions averaged $1.91 trillion. The country’s high ranking comes as no surprise considering the US has one of the largest economies in the world, valued at $28.8 trillion in 2024, according to the International Monetary Fund.
- The US with $1.021 Trillion in Daily Turnover in October 2023
New York is a major financial hub and its forex trading session ranks second in liquidity, further contributing to the country’s outstanding performance in terms of daily forex turnover. The latest semi-annual survey conducted by the Foreign Exchange Committee (FXC) reveals the country retains its second place, reporting a daily trading volume of $1.021 trillion in October 2023 for a 4.6% increase year-over-year.
The total monthly turnover surpassed $22 trillion during this period. All instrument and counterparty types exhibited increases in volumes compared to the same month a year earlier. Trading activities involving spots made up 43% of the US market’s overall turnover with $436.1 billion, followed by swaps ($316.7 billion), outright forwards ($192.6 billion), and over-the-counter options ($75.6 billion).
US Daily Forex Turnover by Instrument in October 2023 (in bn USD)
- Most Traded Pairs in the US: EUR/USD, USD/JPY, USD/CAD
The EUR/USD ranks as the most traded currency in the US for October 2023 when it recorded $215.3 billion in total turnover, with spot transactions making up 44% of this amount. The USD/JPY posted the second-highest daily trading volume of $127.3 billion from spots, forwards, options, and forex swaps.
Despite its high ranking, the dollar against the yen suffered the steepest decline out of all currency pairs as its turnover decreased by $13.8 billion year-over-year. The USD/CAD came in third with $113.4 billion overall, with $37.7 billion from spots, $50.1 billion from swaps, $13.1 billion from forwards, and $12.5 billion from options. High daily volumes for the loonie are no coincidence given the close trading relationship between Canada and the US.
Daily Turnover of Top 3 Most Traded Pairs in the US, October 2023 (in bn USD)
Source: Foreign Exchange Committee Semi-Annual Survey
Daily Trading Volume of Singapore Forex Market
The semi-annual study carried out by the Singapore Foreign Exchange Market Committee (SFXMC) reveals the daily trading volume of derivative and non-derivative forex transactions amounted to $864 billion in October 2023, or $66 billion less than what the country reported in April 2022.
- Non-Derivatives Take 93% Share of Singapore’s Daily Turnover in October 2023
Derivatives like options and currency swaps accounted for $60 billion of the total daily turnover, representing a 7% share of the local forex market compared to 93% for non-derivatives. October 2023 results correspond to a 6% increase from the previous survey conducted in April.
Forex swaps took a 53% share of the market, increasing from $455.1 billion in April 2023 to $459.6 billion in October of the same year. However, spot transactions achieved the strongest growth out of all instruments featured in the survey, rising by 17% (from $184.7 billion to $216.6 billion) during this period.
By comparison, currency swaps were the least traded instrument with $7.8 billion in average daily turnover and a minuscule market share of less than 1%. Currency swaps also fell into the sharpest decline, dropping by 18% from April.
Singapore Daily Forex Turnover in October 2023, by Instrument (in bn USD)
Source: Singapore Forex Exchange Market Committee (SFEMC) Semi-Annual Survey
- Most Traded Pairs in Singapore: USD/JPY, USD/RMB, EUR/USD
Singapore’s forex market committee provides no detailed information about specific daily averages for pairs in its semi-annual survey. Data on monthly trading volumes is available instead, indicating that the USD/JPY was the most traded currency pair in October 2023 when its monthly turnover reached $4.78 trillion. As many as 58% of this total came from forex swaps, which remain the most popular vehicle for forex trading in Singapore.
The island country ranks among China’s top trading partners and has become a major regional hub for renminbi transactions in recent years. Given all this, it is anything but shocking that the USD/RMB places second in monthly trading volume with $2.40 trillion in total as of October 2023. Forex swaps were the most popular instrument among USD/RMB traders in Singapore and generated $1.26 trillion during said month. The EUR/USD secured the third position with $1.81 trillion in monthly total, $1.13 trillion of which came from foreign exchange swaps.
Monthly Turnover of Top 3 Most Traded Pairs in Singapore in October 2023, by Instrument (in bn USD)
Daily Trading Volume of Hong Kong Forex Market
Hong Kong retains its position as the fourth largest forex market and posted a daily turnover averaging $684 billion as of last October. This figure indicates a barely noticeable shrinkage of 1.4% compared to the administrative region’s results for April 2022, when daily trading volumes stood at $694 billion despite the pandemic-related disruptions.
- Hong Kong Turnover Sees 16% YoY Increase in October 2023
Daily average turnover grew by approximately 16% from October 2022 when Hong Kong reported an average of $592 billion per day. Similarly to other top-performing countries, China’s special administrative region saw the most trading activity in forex swaps, which made up 69% of the overall daily turnover ($469 billion). Currency swaps performed very poorly during this month with $4 billion, falling by around 91% from October 2022 when the region recorded $42.7 billion in daily turnover for this instrument.
Hong Kong Daily Forex Turnover in October 2023, by Instrument (in bn USD)
Source: Hong Kong Treasury Markets Association (TMA) Semi-Annual Survey
- Most Traded Currency Pairs in Hong Kong: USD/RMB, USD/HKD, USD/JPY
The USD/RMB outperformed all currency pairs in terms of daily averages, followed by the USD/HKD and USD/JPY. The top-performing pair generated over a quarter of a trillion US dollars in daily transaction volume in October 2023, most of which came from forex swap transactions. For reference, this amount corresponds to a 34% market share.
The USD/HKD ranks as the second most heavily traded forex pair in the Hong Kong market with $134 billion in average daily turnover, up 46% from the same month a year earlier when trading volume averaged $92 billion. The USD/JPY places third with $77.5 billion and an 11% market share.
All three top-performing pairs saw increases from the previous semi-annual survey conducted by Hong Kong’s Treasury Markets Association. One of the most traded currencies in the world, the Hong Kong dollar is also commonly used for transactions in China’s special administrative region of Macau.
Daily Turnover of Top 3 Most Traded Pairs in Hong Kong in October 2023 (in bn USD)
Source: Hong Kong Treasury Markets Association (TMA) Semi-Annual Survey
Daily Trading Volume of Japan Forex Market
Japan is home to one of the largest forex markets on a global scale, which makes perfect sense considering Tokyo is a major financial hub. The yen understandably ranks among the most traded currencies in the world, standing on one side of 17% of all forex transactions that took place in 2022. The Land of the Rising Sun placed fifth in terms of market size in 2022, with an average transaction volume of $433 billion per day.
- Tokyo Forex Market Shrank by 1.7% from April 2022
The latest figures published by the Tokyo Foreign Exchange Market Committee (TFEMC) tell us daily averages for the local forex market stood at $425.7 billion in October 2023. This figure indicates market turnover remained relatively flat compared to the results of the previous semi-annual survey conducted in April of the same year.
However, daily trading volumes shrank by around 1.7% compared to April 2022 when turnover averaged $433 billion per day. Forex swap transactions accounted for the largest share (54%) of the market with $229.5 billion, outperforming spots ($123.5 billion), currency swaps ($21.2 billion), options ($10.4 billion), and forwards ($41.1 billion) by a wide margin.
Japan Daily Forex Turnover in October 2023, by Instrument (in bn USD)
Source: Tokyo Foreign Exchange Market Committee Semi-Annual Survey
- Most Traded Currency Pairs in Japan: USD/JPY, EUR/USD, EUR/JPY
The USD/JPY attracted the most trading activity in Japan as of October 2023, generating $269 billion in average turnover per day, according to the latest semi-annual survey conducted in the country. Despite its strong performance, trading activity for this pair suffered a 3.4% decline compared to the results from the previous survey period.
Decreases were observed in all instruments involving the USD/JPY pair bar currency swaps whose turnover soared by over 184% from April 2023. The EUR/USD and EUR/JPY placed second and third with daily averages of approximately $28.7 billion and $26.6 billion, respectively. Most of these volumes resulted from forex swap transactions whose shares of the overall daily turnover amounted to 53% for USD/JPY, 62% for EUR/USD, and 44% for EUR/JPY.
Daily Turnover of Top 3 Most Traded Pairs in Japan in October 2023 (in bn USD)
Source: Tokyo Foreign Exchange Market Committee Semi-Annual Survey