Average daily turnover in global foreign-exchange markets reached $5.3 trillion in April 2013, according to the Bank for International Settlements' triennial survey. The total was substantially higher than the comparable April 2010 figure.
What the headline figure represented
The survey aggregated reported activity across spot transactions, outright forwards, foreign-exchange swaps, currency swaps, options and related products. It measured turnover rather than the amount of money permanently invested or the value of goods traded internationally.
The comparison indicates growth of roughly one-third between the two survey windows. Because currency instruments can involve frequent short-term transactions and interdealer activity, turnover should not be interpreted as a direct measure of economic output or international trade.
Which instruments drove activity?
Foreign-exchange swaps represented the largest component of the market in the 2013 survey. These contracts exchange currencies and reverse the exchange at an agreed later date, making them useful for short-term funding, liquidity and hedging. Spot trading—the exchange of currencies for near-term delivery—also accounted for a large share.
| Instrument | Approximate daily turnover | Typical purpose |
|---|---|---|
| FX swaps | $2.2 trillion | Funding, liquidity and hedging |
| Spot transactions | $2.0 trillion | Near-term currency exchange |
| Outright forwards | $680 billion | Fixing an exchange rate for a future date |
| Options and other products | Smaller combined share | Conditional hedging and market exposure |
Rounded categories may not sum precisely to the headline total. Survey methodology and adjustments also matter when comparing releases, so individual figures are best read alongside the definitions used for that edition.
The dollar's central role
The US dollar appeared on one side of most reported currency trades. Since every transaction contains two currencies, market shares add to 200% rather than 100%. That convention is essential when interpreting currency rankings.
The euro remained the second most traded currency, although its share was lower than in the preceding survey. The Japanese yen's share increased, while several emerging-market currencies became more visible in the global totals. These movements reflected the trading conditions and market interests of the 2013 survey period.
Why turnover grew
No single mechanism explains the increase. The survey period included active portfolio rebalancing, changes in expectations about major central banks and greater participation by non-bank financial institutions. Growth in electronic trading also made it easier for a wider range of institutions to transact across venues.
- Portfolio flows: investors adjusting international asset exposure generated currency transactions.
- Hedging: institutions used forwards, swaps and options to manage exchange-rate and funding risk.
- Monetary-policy expectations: changing views about interest rates affected relative currency demand.
- Market access: electronic execution expanded connectivity, although trading remained concentrated in major financial centres.
Geographic concentration
Trading was international but not evenly distributed. The United Kingdom was the largest location for foreign-exchange dealing in the survey, followed by the United States, Singapore and Japan among the principal centres. Location refers to the sales desk arranging a transaction, not necessarily the residence of both parties or the currencies involved.
How to use this figure responsibly
The $5.3 trillion number is useful for understanding the scale and structure of the market at a specific point in time. It should not be presented as a current daily total, and it does not by itself show whether speculation, trade finance or hedging caused a particular exchange-rate movement.
- Confirm the survey month and publication date.
- Distinguish gross turnover from net positions and economic output.
- Check whether figures are adjusted for double counting.
- Compare instruments and counterparties rather than relying only on the aggregate.
- Use a newer survey when describing current market conditions.
Why the survey still matters
The triennial survey provides a consistent historical framework for examining changes in currency trading. The 2013 edition captures a period when electronic execution, non-bank participation and cross-border portfolio activity were reshaping market structure. Its value today lies in comparison and historical analysis rather than immediacy.