These are the results of the 38th Survey of North American Foreign Exchange Volume by the Foreign Exchange Committee.

The FX Volume Survey 2023 by the Foreign Exchange Committee at a glance:

■ Average daily volume declined across most categories compared to the October 2022 survey: spot fell by 10.6%, swaps by 1.9%, and OTC options by 19.4%. The only exception was forward transactions, which increased by 3.2%.

■ Turnover decreased across all counterparty types: volumes reported by “Reporting Dealers” dropped 7.1%, “Other Dealers” fell 9.8%, “Other Financial Customers” declined 2.6%, and “Nonfinancial Customers” decreased 2.4% since October 2022.

■ Year-over-year, average daily volumes fell across all instruments: spot was down 3.3%, forwards 7.1%, swaps 3%, and OTC options 4.1%.

■ The largest volume increases since the October 2022 survey occurred in USD/HKD ($4.0 billion increase) and USD/NZD ($3.0 billion increase). Year-over-year, USD/MXN experienced the biggest increase in transaction value for a single currency pair, rising by $8.3 billion across all instruments.

■ The largest volume decrease since October 2022 was seen in GBP/USD, which dropped by $20.3 billion in average daily volume. Year-over-year, EUR/USD had the greatest decline, down $16.6 billion.

■ Average daily total volume in over-the-counter (OTC) Forex instruments was $918.4 billion in April 2023, representing a 4.0% decrease compared to the previous year. This figure includes Forex spot, swaps, forwards, and option transactions.

About the Foreign Exchange Committee

The Committee was established in 1978 under the sponsorship of the Federal Reserve Bank of New York, although it operates independently from the Federal Reserve Bank. It is composed of individuals from institutions that actively participate in the Forex and other global financial markets.

About the Survey

The survey examines the size and structure of North American Foreign Exchange activity. Data are segmented by four Forex instruments, thirteen currency pairs, four counterparty types, and five execution methods.

The Committee invited 21 leading financial institutions active in the North American Forex market to contribute turnover data for April 2023.

Additionally, the Committee collaborated with other regional committees, including the United Kingdom’s Foreign Exchange Joint Standing Committee (FXJSC), the Singapore Foreign Exchange Market Committee (SFEMC), the Tokyo Foreign Exchange Market Committee (TFEMC), the Canadian Foreign Exchange Committee (CFEC), and the Australian Foreign Exchange Committee (AFXC).

Turnover is defined as the gross value of all new deals entered during the reporting period, measured by the notional amount of the contracts.

■ FX Volume Survey 2023 by Foreign Exchange Committee

ExpertSignal.com (September, 2023)

The source is the Federal Reserve Bank of New York web page: https://www.newyorkfed.org/fxc/volumesurvey