Australian foreign exchange market moderated

Image courtesy of [David Castillo Dominici] \

The Reserve Bank of Australia released today the findings of its triennial foreign exchange over-the-counter (OTC) interest rate derivatives market survey conducted in April 2013.

Image courtesy of [David Castillo Dominici] \
Image courtesy of [David Castillo Dominici] \

Total turnover fell by around 5 per cent, in contrast to a 35 per cent increase in global turnover over the same period. The drop placed Australian foreign exchange market 8th world’s largest from 7th in the previous survey.

The Australian dollar increased its share of turnover from 1% to 8.5% per cent, maintaining its place as the 5th most traded currency. The AUD/USD remains the fourth most traded currency pair, having also accounted for an increased share of global turnover over the three-year period.

Activity in Australian OTC interest rate derivatives markets rose strongly over the three-year period, reflecting growth in turnover of both forward rate agreements and interest rate swaps. Global data on outstanding OTC derivatives as at June 2013 will be published by BIS and Reserve Bank in November.

Other highlights in in the report include the 70% increase in global turnover of the USD/JPY currency pair. The United Kingdom’s foreign exchange market also experienced the largest increase in foreign exchange turnover over the three-year period, recording a 4% growth in global market share.

The study was part of a global survey of 53 jurisdictions, coordinated by the Bank for International Settlements (BIS). The BIS Triennial Central Bank Survey is the most comprehensive source of information on the size and structure of global foreign exchange and OTC derivatives markets.