GLOBAL FOREIGN EXCHANGE MARKET STATISTICS (COMPREHENSIVE LATEST UPDATE 2025)

[dragontrader]

The Foreign Exchange (FX) market is on a record-breaking growth trajectory, cementing its position as the world's most liquid market. This post summarizes the most critical statistics, drawing from the 2022 BIS Triennial Survey and incorporating the latest estimates up to 2025.

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1. Market Size: Hitting the $9.6 Trillion USD/Day Mark (2025 Estimate)​

The FX market maintains strong growth, primarily fueled by interest rate volatility and hedging demands.

• 2019: $6.6 Trillion USD/day
• 2022: $7.5 Trillion USD/day (Up 14% from 2019)
• 2025 (Estimate): ~$9.6 Trillion USD/day (Up approximately 28% from 2022)

2. Turnover by Instrument Structure (2022)​

Derivative instruments, especially swaps, continue to hold absolute dominance.

• FX Swaps: Approximately 50%
• Spot Transactions: Approximately 28%
• Outright Forwards: Approximately 15% (Includes NDFs—a key growth driver in emerging markets)
• Other Instruments: Approximately 7%

3. Top Currencies and Major Pairs (2022)​

The US Dollar (USD) remains the dominant currency globally.

Top 5 Most Traded Currencies:​

1. US Dollar (USD): Involved in 88% of total turnover.
2. Euro (EUR): 31%
3. Japanese Yen (JPY): 17%
4. Pound Sterling (GBP): 13%
5. Chinese Yuan (CNY): 7% (Overtook AUD to become the world's 5th most traded currency).

Top 3 Major Currency Pairs:​

• EUR/USD: 23%
• USD/JPY: 17%
• USD/GBP: 10%

4. Largest Global Trading Centers​

Trading activity remains highly concentrated in major financial hubs.

• 1. The United Kingdom (London): Maintains the absolute lead, accounting for nearly 38% of global market share ($4.745 Trillion USD/day).
• 2. The United States (New York): The most crucial liquidity center for the USD (Approx. 16% share).
• 3. Singapore & Hong Kong: Rapidly growing Asian hubs. Hong Kong is the world's largest center for Offshore CNY trading.

5. Counterparty Structure and Retail Traders​

The inter-dealer market is recovering, contributing significantly to volume.

• Inter-dealer Trading (Between banks): Growth outpaced dealer-to-client trading, signalling strong recovery in interbank liquidity.
• Retail FX Traders: Account for about 5% to 6% of total turnover. This segment is characterized by younger traders who rely heavily on mobile platforms.