Daily currency volume has grown by 40% over the past decade
The year 2019 showed the return of a strong upward trend in the Change market. After the decline in 2016, daily turnover in the global foreign exchange market reached $ 6.6 trillion this year. According to research from LearnBonds.com, recent data shows a 40% increase in daily Forex trading volume over the past decade.
2019 brings foreign exchange market growth record
The Triennial Forex Exchange Survey indicates that 2019 brought a significant three-year increase in average daily currency turnover. In 2010, it nearly reached $ 4 trillion, which was the peak of nine years of continuous growth. In 2013, the global Forex market reached $ 5.3 trillion in average trading volume per day. The 25% increase represents the first massive increase since 2001.
Due to the monetary shock of the Swiss franc in 2015, the arrival of the new regulatory environment in the banking sector and the predominance of risk averse players in the market, 2016 resulted in a decrease to $ 5.1 trillion in the average daily currency turnover. This is the first decline reported since 2001.
Yet the past three years have brought not only the recovery from previous challenges, but also significant growth in the global market. Change market. Between 2016 and 2019, daily currency volume jumped 30%. The increase of $ 1.5 trillion over a three-year period represents the record growth in the foreign exchange market over the past 19 years.
Rise in Currency Swaps and Ecommerce Boosts Forex Market
The increase in total currency turnover is mainly caused by the boom in currency swaps, used for liquidity management and hedging of currency portfolios. In 2019, currency swaps accounted for 49% of total currency market revenue. In the past year, that figure reached $ 3.2 trillion, which is a 34% increase from the previous report. Spot transactions jumped to $ 1.98 trillion, accounting for 30% of global currency volume in 2019.
At the same time, the network connections of forex markets on a global scale have resulted in increased concentration of trade in certain financial centers. E-commerce enables fast transactions, which contributes to the overall growth of FX revenue. Data from 2019 shows that it accounted for 56% of total currency trading. Although it first took place in dealer-to-dealership, statistics indicate that the dealer-customer segment has seen the greatest increase as a rapidly connected network in recent years.
The e-commerce trends will continue to shape the forex market over the next several years. According to JP Morgan’s 2019 e-commerce survey, artificial intelligence and machine learning will be the two most important characteristics that will shape future commerce.
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