FX: WORLD’S BIGGEST MARKET PULLS BACK (A LITTLE ) AT LAST

The daily turnover of global foreign exchange markets fell by 5.6% from April 2013, to an average US$ 5.1 trillion in April 2016, according to the recently published figures of the Bank for International Settlements’ “Triennial Central Bank Survey”. It is also the first time since 2001 that FX spot turnover has subsided. Naturally, exchange rate movements influence comparisons with previous surveys. In particular, the appreciation of the US dollar between 2013 and 2016 reduced the USD value of turnover in other currencies. When valued at constant (April 2016) exchange rates, global turnover increased slightly, by about 4% between April 2016 and April 2013. Nevertheless, the latest developments contrast with the strong growth in turnover observed between Triennial Surveys since 2001. Indeed, the previous decade had seen a continuous growth in the global size of the currency markets, with traded values increasing by nearly 400%, from US$ 1.1 trillion in…

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