Source link – Reserve Bank of Australia

The Reserve Bank of Australia has today released a summary of findings from the latest triennial survey of
turnover in foreign exchange (FX) and over-the-counter (OTC) interest rate derivatives markets that was
conducted in the Australian market in April 2022.

This was part of a global survey that involved central banks and authorities from 52 jurisdictions
and was coordinated by the Bank for International Settlements (BIS) to obtain comprehensive and
consistent information on the size and structure of FX and OTC derivatives markets. Similar surveys have
been conducted every three years since 1986 for activity in FX markets and since 1995 for OTC interest
rate derivatives markets.

Globally, the Australian dollar is the sixth most traded currency, down from fifth in the previous survey;
its share of turnover declined slightly to be around 6 per cent. The AUD/USD is the sixth most
traded currency pair globally, down from fourth in the previous survey.

Activity in Australia’s FX market has increased since the April 2019 survey. Average daily turnover
in Australia’s FX market increased by 26 per cent to US$150 billion in April
2022.[1] In
comparison, global turnover increased by 14 per cent over the same period. Australia’s FX
market is now ranked the 11th largest in the world, down from 10th in April 2019.

FX swaps continued to account for the majority of turnover in the Australian FX market, accounting for
57 per cent of total turnover. Spot trades accounted for 23 per cent of turnover,
down from 28 per cent in 2019, and outright forwards accounted for 17 per cent of
turnover, up 4 percentage points from the previous survey.

Activity in the Australian OTC interest rate derivatives markets increased since the previous survey.
Average daily turnover in Australian OTC interest rate derivatives markets increased by
16 per cent compared with three years prior to US$113 billion during April 2022. This
reflected an increase in turnover of interest rate swaps. This was is in contrast to the global results
where turnover of OTC interest rate derivatives declined over the three year period.

RBA Assistant Governor (Financial Markets) Christopher Kent said, ‘The BIS Triennial Central Bank
survey is the most comprehensive source of information on FX and OTC interest rate derivatives markets.
The results highlight that the Australian dollar is still one of the most traded currencies in global FX
markets. Increased activity in the Australian market was driven by turnover of FX swaps and outright
forwards, which are generally used to hedge currency risk. We are pleased to participate in this survey
and we thank market participants for their contributions.’

The preliminary results of the global turnover survey are available from the
BIS website.
The final data
and related analysis will be released by the BIS in December 2022. Links to other participating
jurisdictions’ results are available from the
BIS website.
Detailed results for the Australian
market are available on the 2022 BIS Triennial Survey Results – Australia page. The BIS will also
publish global data on amounts outstanding in OTC derivatives markets in November 2022.




Source link – Reserve Bank of Australia