Global FX market daily turnover hits $6.6t in 2020 | Asian Banking & Finance

Global FX market daily turnover hits $6.6t in 2020

A 40% increase in daily forex trading volume was noted over the last decade.

Daily turnover in the global foreign exchange market has hit $6.6t, with a 40% increase in a daily forex trading volume over the last decade, according to a bond research firm LearnBonds.

This marks a nine-year peak since daily FX turnover reached $4t in 2010. The 25% increase represented the first massive rise since 2001, LearnBonds said.

The swiss franc currency shock of 2015, the arrival of the new regulatory environment in the banking industry, and the predominance of risk-averse players on the market drove daily FX average turnover to drop to $5.1t in 2016.

But between 2016 and 2019, daily FX volume jumped 30% and grew by $1.5t over the period, represented the record high FX market growth for the last 19 years, the report said. This was primarily caused by the surge in FX swaps for liquidity management and hedging of foreign currency portfolios, the report said.

In 2019, FX swaps comprised 49% of the total FX market turnover where it reached $3.2t, a 34% increase compared to the previous report. Spot transactions ballooned to $1.98t, a 30% rise of the global FX volume the same year.

Network connections of FX markets globally has led to an increased concentration of trading in some financial hubs, with e-trading comprising 56% of total FX trading in 2019. Dealer-to-customer segment has experienced the most significant rise as a fast connected network over recent years, the report added.

Get Asian Banking & Finance in your inbox
Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

The number of HNWIs is expected to reach 3.9 million in 2021 or 60.6% of the population.
Banks have to remain consistent and continuous in testing best practices.
Shares were priced at the top end, at KRW39,000 ($34).
In January, 1.2 million transactions were carried out via the SGQR.
Its launch will require legal changes to the nation’s foreign exchange and IT rules.
But less than half of consumers are impressed with the digital financial services currently offered.
Treasury teams can mobilize liquidity and fund intraday payments in real-time.
Customers have the option to pay their tax balances in full or partially.
About 750 new accounts have been opened in four APAC markets through the new portal.
UnionDigital will be a wholly-owned subsidiary of the Philippine lender.
SmartStream’s Peter Hainz and Amazon Web Services’ Anna Green shared their insights on the advantages of on-demand and highly scalable cloud environments for banks and other financial institutions, as well as the factors hindering its adoption in the region.
This August, the Asian Banking & Finance and SAP will provide insights on the evolving landscape for ESG in financial services.
Thirteen lenders noted that demand was moderately weaker than the preceding 3-month period.
Investors will likely seek signs that private lenders will be able to step up lending once COVID subsides.