trending Market Intelligence /marketintelligence/en/news-insights/trending/d5NlvNU5cPnTYS3GPf86bw2 content
Log in to other products

Login to Market Intelligence Platform

 /


Looking for more?

Contact Us

Request a Demo

You're one step closer to unlocking our suite of comprehensive and robust tools.

Fill out the form so we can connect you to the right person.

If your company has a current subscription with S&P Global Market Intelligence, you can register as a new user for access to the platform(s) covered by your license at Market Intelligence platform or S&P Capital IQ.

  • First Name*
  • Last Name*
  • Business Email *
  • Phone *
  • Company Name *
  • City *
  • We generated a verification code for you

  • Enter verification Code here*

* Required

In This List

US dollar remains dominant in forex trading

Street Talk Episode 61 - Investors debate if U.S. banks have enough capital in post COVID world

You Down With PPP? Consider The Risks

Street Talk Episode 60 - You Down With PPP? Consider The Risks

Street Talk Episode 56 - Latest bank MOE shows even the strong need scale to thrive


US dollar remains dominant in forex trading

The U.S. dollar continues to be the dominant currency in foreign exchange trading, being used in 88% of all trades, according to the Bank for International Settlements.

The BIS triennial survey revealed volumes returned to growth after declining in the last survey in 2016, hitting $6.6 trillion per day in April 2019. By way of scale, this compares to a total of less than $100 billion per day trade in goods and services in 2018.

"The dollar's dominance reflects its importance as a vehicle and funding currency," said Hyun Song Shin, BIS economic adviser and head of research.

More than half of the rise was accounted for by forex swaps, a form of collateralized borrowing.

Emerging-market growth

The yuan has made little progress as a major currency, remaining the eighth-most significant international currency in forex trading, despite China vying with the U.S. to be the world's largest economy.

Yet, emerging-market currencies as a whole did progress, increasing their share in forex trading to 23%, up from 19% in 2016 and 15% in 2013, with China the biggest player.

There was also a trend toward increased offshore trading, with forex increasingly being concentrated in London, New York, Singapore and Hong Kong. Three-quarters of the total was cleared in these four financial centers in April 2019, up from 71% in 2016 and 65% in 2010.

"Technological innovation, especially the rise in electronic and automated trading, was a major factor behind the increase in offshore trading," Hyun said.