US dollar strengthens its position in the Norwegian foreign exchange market
Monthly turnover in the Norwegian foreign exchange market was equivalent to USD 169.1 billion in April 1998, compared with USD 129.7 billion in April 1995. Forward transactions, including swaps, accounted for 65.8 per cent of the turnover.
The US dollar was the most heavily traded currency, and was involved in 41.5 per cent of total turnover. Foreign exchange transactions in the Deutsche mark declined by about 2.9 percentage points, to 17.2 per cent of total turnover, from 1995 to 1998.
The turnover of interest rate derivatives has risen by about 12 per cent since 1995, with FRAs still accounting for the highest share of turnover, ie 94.3 per cent. The Norwegian krone was involved in 86.5 per cent of total turnover in FRAs.
These figures are based on a survey of activity in the Norwegian foreign exchange market, conducted by Norges Bank in April 1998 among 19 banks. At the same time, a corresponding survey was carried out in 43 other countries. The survey is designed and coordinated by the Bank for International Settlements (BIS). Similar surveys were conducted in 1989, 1992 and 1995.
Average daily turnover of foreign exchange contracts has risen by 17 per cent since 1995 and by 71 per cent since 1992. The share of spot transactions declined from 45 per cent in 1995 to 33.6 per cent in 1998. The share of forward transactions rose from 54.4 per cent in 1995 to 65.8 per cent in 1998.
Further information may be obtained from: Sindre Weme, Head of Division, telephone: +47 22 31 62 65
Press telephone: +47 21 49 09 30