Foreign Exchange and Derivative Turnover Survey

Source: http://www.rbnz.govt.nz/news/2016/09/foreign-exchange-and-derivative-turnover-survey

Release date by Reserve Bank of New Zealand: #02 September 2016

New Zealand's foreign exchange market handled an average of US$10.6 billion per day in April 2016 according to a Reserve Bank survey released today. This is less than the April 2013 turnover figure of US$12.4 billion but greater than the April 2010 figure. The New Zealand dollar dropped one place to the eleventh most traded currency globally, with an average daily turnover of US$105 billion.

The results are part of a triennial survey co-ordinated by the Bank for International Settlements (BIS). Commenting on the survey, Head of Financial Markets Mark Perry said: "The decrease in foreign exchange turnover (which is measured in USD terms) was largely the result of the appreciation of the United States dollar. In New Zealand dollar terms, average daily turnover rose 5.6 percent. Total global foreign exchange turnover fell from US$5.3 trillion to US$5.1 trillion per day over the past three years, but rose slightly on an exchange rate adjusted basis.

“Central banks and other authorities in 52 jurisdictions participated in the 2016 survey, with data collected from more than 1200 banks and other dealers. In New Zealand, the survey captured the activity of the five major banks participating in the local wholesale financial markets.

"Foreign exchange spot turnover in New Zealand is dominated by trading-partner currencies such as NZD/USD, NZD/AUD, and USD/EUR. Together, this accounted for 65 percent of all local spot turnover in April 2016. Most foreign exchange trading occurs in major international financial centres and 93 percent of all New Zealand dollar turnover occurs offshore.

“In New Zealand, turnover in spot and FX derivatives markets fell, while FX swap turnover increased to 82 percent of total turnover. Turnover in interest rate derivatives is also reported, with average daily interest rate swap turnover in New Zealand increasing by US$3,396 million over the past three years to US$4,923 million. Overnight Indexed Swaps (OIS) has been the main cause for the increase in volume between 2013 and 2016. The OIS market has developed over the past three years with more liquidity now evident in the market.”

The BIS global report can be found on the BIS website: 2016 Triennial Central Bank Survey of Foreign Exchange and OTC Derivatives Market Activity