The Bank for International Settlements published an analysis in the BIS Quarterly Review using the 2025 Triennial Central Bank Survey, reporting that average daily over-the-counter foreign exchange turnover rose to USD 9.5 trillion in April 2025, up 27% from April 2022. The increase was closely associated with heightened volatility after US tariff announcements and a sharp US dollar depreciation, which prompted market participants to hedge US dollar exposures. Growth was concentrated in instruments used to adjust hedge ratios, with spot turnover up 42%, forwards up 51% and options up 108% compared with April 2022, while FX swaps rose only 6% and interbank swap trading stagnated. The article estimates that April’s tariff-related shocks contributed about USD 1.5 trillion to daily turnover, and links the broader backdrop to higher hedging costs after 2022–23 global monetary tightening that left many investors underhedged. Dealers absorbed elevated client activity by relying more on intragroup risk transfers and internalising a larger share of client trades, supporting resilient liquidity conditions and showing no signs of US dollar funding stress; emerging market currencies’ share of global turnover rose to 29%, led by the Chinese renminbi at 8.8%.
Bank for International Settlements 2025-12-08
Bank for International Settlements finds global FX turnover reached USD 9.5 trillion a day in April 2025 as hedging demand surged
The Bank for International Settlements reported a 27% increase in average daily over-the-counter foreign exchange turnover to USD 9.5 trillion in April 2025, driven by US tariff-induced volatility and US dollar depreciation. Growth was notable in hedging instruments, with spot turnover up 42%, forwards up 51%, and options up 108% compared to April 2022. Despite increased activity, liquidity remained resilient, with no US dollar funding stress, and emerging market currencies' share of global turnover rose to 29%, led by the Chinese renminbi at 8.8%.