Singapore maintains position as world’s third-largest foreign exchange centre, after US and UK

SINGAPORE: Singapore has maintained its standing as the world’s third-largest foreign exchange centre, behind only the United Kingdom and the United States, according to data released by the Monetary Authority of Singapore (MAS).

In a statement issued yesterday (Oct 1), MAS said that Singapore’s average daily foreign exchange (FX) trading volume surged by 60 per cent in April this year compared to April 2022, reaching US$1.485 trillion. The findings were based on the Bank for International Settlements’ (BIS) Triennial Central Bank Survey, released on April 30.

The BIS survey, conducted once every three years, tracks global foreign exchange and over-the-counter (OTC) derivatives markets. It showed Singapore’s share of global FX trading rose from 9.5 per cent in 2022 to 11.8 per cent this year.

MAS attributed the growth largely to trading in major currencies, with the US dollar, Japanese yen and euro posting the biggest increases, ranging between 36 and 65 per cent. The Chinese renminbi and Australian dollar also saw higher trading volumes.

Instruments such as FX spot, futures and swaps, which together make up about 90 per cent of Singapore’s FX activity, recorded volume increases of between 42 and 61 per cent over the same period.

OTC interest rate derivatives trading also rose significantly, averaging US$208 billion per day in April. This marked a 33 per cent increase from April 2022. Among these, interest rate derivatives involving the US dollar, Japanese yen and Australian dollar were the most actively traded.