Lower turnover in the Norwegian foreign exchange and OTC interest rate derivatives market
Trading in the Norwegian foreign exchange market averaged USD 24.5 billion per day in April 2022, a decline of 18 percent from April 2019. Average daily trading in the over-the-counter (OTC) interest rate derivatives market decreased slightly. These are the results of a survey of activity in the Norwegian foreign exchange and derivatives market conducted by Norges Bank in April 2022. The survey is part of a global survey of 51 countries coordinated by the Bank for International Settlements (BIS).
The BIS Triennial Survey has been conducted every three years since 1989. In addition, data on outstanding amounts were collected at the end of June 2022. The BIS will publish the results of these surveys in November 2022.
Higher daily turnover in the Norwegian spot market, but lower turnover in the forward market
Daily foreign exchange spot trading averaged USD 2.5 billion in April 2022, up from USD 1.6 billion in April 2019. Daily forward trading fell, from USD 27.9 billion to USD 21.7 billion in the same period. In the Norwegian foreign exchange market, the US dollar remained the most traded currency, although the share of transactions involving the Norwegian krone increased. Foreign currency trading involving non-Norwegian counterparties increased compared to the survey in April 2019.
The BIS has included currency options and currency swaps in the trading figures for the foreign exchange market since 2010. These continue to account for a modest share of total turnover.
According to the BIS, reporting banks in the Norwegian foreign exchange market had a market share of 0.2 percent of turnover in the global foreign exchange market in April 2022, compared with 0.4 percent in April 2019. Transactions involving the Norwegian krone accounted for 1.7 percent of turnover in the global foreign exchange market compared with 1.8 percent in April 2019.
Daily trading in OTC interest rate derivatives slightly lower
Average daily trading in OTC interest rate derivatives fell slightly to USD 6.3 billion in April 2022. Trading in forward rate agreements (FRAs) fell by 11 percent between April 2019 and April 2022, while activity in interest rate swaps increased by 13 percent in the same period. The survey registered USD 39 million in daily turnover in interest rate options. According to the BIS, Norwegian banks had a market share of 0.1 percent of turnover in the global OTC interest rate derivatives market in April 2022, unchanged from the survey in April 2019.
1) Also referred to as basis swaps.
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