Introduction

The foreign exchange market is the world's largest and most liquid financial market, recording a daily turnover of approximately USD 9 600bn in 2025 [1]. By comparison, foreign exchange turnover amounted to over 20 times daily global GDP.

An efficient and liquid foreign exchange market is of great importance to the global economy and for well-functioning financial markets. It facilitates cross-border transactions linked to the trade of goods and services, foreign investment and lending and transactions linked to hedging and speculation. Norges Bank has signed the FX Global Code, which promotes a well-functioning foreign exchange market.

The Bank for International Settlements (BIS) conducts a triennial survey on turnover in the foreign exchange market, where trading largely occurs bilaterally[2]. The survey is widely regarded as the most comprehensive overview of activity and developments in the foreign exchange market. See Annex for more detailed information regarding the survey.  

This year's report takes a closer look at developments in local and cross-border NOK trading and in total, ie global NOK turnover. In addition, the report will also cover all foreign exchange trades transacted in Norway, as well as the global interest rate derivatives turnover in NOK. Reporting banks in the BIS survey provide figures in USD, which is the unit of measurement in this report.[3]

Global NOK turnover remained stable in April 2025 compared with the previous BIS survey in 2022. This contrasts with overall turnover in the global foreign exchange market, which has risen markedly. While foreign exchange swaps in NOK continue to be the instrument with the largest turnover, the share of spot and forward contracts has risen. Most trades in NOK is cross-border without the involvement of a Norwegian reporting bank. The most traded currency pair is USD/NOK followed by EUR/NOK. Figures indicate that the NOK market is becoming increasingly electronic and that financial institutions, including the largest banks, account for most turnover.

Global NOK turnover

Global NOK turnover covers all local and cross-border purchases and sales of NOK, ie the figures cover a transaction in NOK regardless of whether it was traded in Trondheim or Singapore.

NOK turnover is little changed

In April 2025, daily global NOK turnover amounted to the equivalent of around USD 127bn (Chart 1), roughly the same level as in 2022. This development deviated from global foreign exchange turnover, which increased by almost 30%, reflecting a continued trend in recent years. According to the BIS, higher turnover in the 2025 survey reflects foreign exchange market volatility following the implementation of new trade barriers between many of the world's leading economies.

Global NOK turnover accounted for a total of 1.3% [4] of global foreign exchange turnover, down from 1.7% in 2022. By comparison, the share of SEK and DKK accounted for 1.6% and 0.7% of global foreign exchange turnover in the 2025 survey.  

Chart 1: Daily NOK turnover in April 2025. Global. By instrument. In billions of USD

Higher spot and forward turnover

Foreign exchange is traded using different instruments that are characterised by transaction timing, ie when the trade is settled and the currencies are exchanged between the parties, and instrument structure. Spot trades are settled in the near term, typically within one or two business days. An FX forward contract is settled in the longer term, eg in one month. An example of a structured product is a foreign exchange swap (FX swap), as the agreement involves simultaneously exchanging currencies at the spot rate to then reverse the exchange at a later date at the forward rate. Currency swaps [5] share many similarities with foreign exchange swaps but often have a considerably longer maturity. An FX option gives the buyer the right, but not the obligation, to exchange currencies if a specific condition is satisfied.  

Global NOK turnover in forward contracts has doubled since 2022 to roughly USD 29bn per day (Chart 1). The turnover in spot trades also rose compared to 2022. Spot turnover increased by 17% to USD 42bn a day. Higher spot and forward turnover in NOK may reflect the greater need of different financial institutions to adjust their foreign exchange exposure, especially against USD, due to increased financial market volatility. [6]

According to our market contacts, some Norwegian exporters hedged their foreign currency revenues when USD strengthened against NOK at the beginning of April. In April 2025, turnover in spot and forward markets accounted for 33% and 23% of global NOK turnover, respectively.

FX swap transactions in NOK amounted to USD 50bn per day in April 2025. Although turnover was lower than in 2022, the volume is in line with previous years. As a share of total turnover in 2025, FX swap trading fell to 40%. According to our market contacts, this may reflect market participants entering into foreign exchange swaps with somewhat longer maturities than usual.

Financial institutions continue to account for the vast majority of NOK turnover

Figures for global NOK turnover have long shown that larger banks [7]  account for an increasing share of activity (Chart 2). This was particularly clear in the 2022 survey, when trades between large banks accounted for as much as half of all NOK turnover. Even though this share declined somewhat in the 2025 survey, it remains high. However, the turnover of larger banks compared with other financial institutions accounts for 95% of total turnover, reflecting a trend in which the turnover of financial institutions has increased at the expense of non-financial customers.  

Chart 2: Daily turnover in NOK. Global. By counterparty. In billions of USD

USD accounts for the largest share of global turnover in NOK

The USD share of foreign exchange turnover in NOK accounts for as much as 67% of total NOK turnover. One reason that USD/NOK has become the most traded currency pair over time is that the US foreign exchange swap market is an important source of funding for Norwegian banks and a common investment option for Norwegian asset managers. EUR/NOK is the second most traded currency pair, accounting for 25% of global NOK turnover. USD and EUR account for 54% and 36% in the NOK spot market, and 71% and 20% in the forward market, respectively.

Higher turnover in the NOK interest rate derivatives market

Unlike in the foreign exchange market, instruments in the interest rate derivatives market are only traded in a single currency. Forward rate agreements (FRA) in NOK are fixed rate agreements for specific periods in the future, often from one quarter to another. Interest rate swaps (IRS) are fixed-for-floating rate swap agreements that last between one day and multiple years. These instruments are reported as "other swaps" from 2019, when gathering turnover in so-called overnight indexed swaps (OIS) commenced. OIS agreements are also fixed rate agreements with longer maturities in exchange for a compounded floating overnight rate. Options on, eg an IRS, may be exercised if a rate level has been reached within an agreed timeframe.

Chart 3 shows global turnover developments in NOK-denominated interest rate derivatives. Daily turnover in this market has varied between USD 20bn and 30bn over the past three years and was around USD 28bn in 2025. This is almost 30% higher than in April 2022. Interest rate swaps remain the most common instrument. Following the transition to alternative reference rates in a number of markets, OIS contracts now account for a larger share of turnover. Today, this share is just under 20%, which is substantially higher than in previous surveys. In April 2025, the daily global turnover in NOK-denominated OIS contracts amounted to around USD 6bn, or approximately NOK 62bn. While the use of OIS contracts has increased, turnover among other IRS contracts has fallen somewhat.

Cross-border turnover in NOK-denominated interest rate derivatives remains highest outside of Norway. However, the share in Norway has risen from around 23% to now almost 40%.

Chart 4 shows turnover by counterparty. The relative size of reporting banks and other financial institutions has varied over time. In April 2025, the share of other financial institutions continued to increase to almost 85%, while turnover linked to reporting banks only accounted for around 10%. Compared with turnover in interest rate derivatives across all currencies, a similar trend can be observed where other financial institutions account for a larger market share. Non-financials have generally accounted for the lowest turnover among survey participants and in the 2025 survey, they accounted for around 5%.

Chart 3: Daily turnover in interest rate derivatives in NOK. Global. By instrument. In billions of USD

 

Chart 4: Daily turnover in interest rate derivatives in NOK. Global. By counterparty. In billions of USD

Local NOK turnover

Local NOK turnover refers to trades in which at least one of the counterparties is a reporting dealer with a presence in Norway. As in previous surveys, this turnover is characterised by the fact that only a few reporting dealers account for a relatively large share.

Slightly lower local NOK turnover

Local NOK turnover fell slightly compared with the 2022 survey (Chart 5). Turnover levels in the past three surveys have nevertheless been relatively stable. As discussed in connection with the global NOK trading figures, turnover in the foreign exchange swap market is by far the highest, followed by turnover in spot and forward markets.[8] The local market for NOK options and currency swaps is small.

Transactions in the spot market, and for FX forwards in NOK, each only account for 4% of global NOK turnover, implying that only one in twelve spot and forward NOK transactions reported to the BIS involves a local counterparty. This ratio has remained relatively stable in recent surveys. In the NOK FX swap market, the share reported locally is somewhat higher, at 13%.

Chart 5: Daily turnover in NOK. Norway. By instrument. In billions of USD

Electronic trading dominates in the spot market

The survey also addresses how Norwegian reporting dealers have conducted their NOK trades. Over time, the trend has been that spot market turnover has become increasingly electronic, with counterparties in the Norwegian market appearing to adopt an expanding range of electronic tools and platforms to access spot liquidity. The survey indicates that around 80% of spot trades in April this year were executed electronically, up from about 40% in 2010, when such figures were first reported. In contrast, trading in the forward market remains largely ‘manual’, with roughly half of trades still concluded via voice.[9] This was a comparatively higher share than in 2022 and 2019. Some market contacts suggest that this may be attributable to increased derivatives market volatility, which made it more natural to execute forward trades manually rather than electronically.  

Cross-border NOK trades

The BIS survey shows that nine out of ten trades in NOK are cross-border, meaning that no Norwegian reporting dealer is involved in the transaction. "Cross-border" here denotes transactions reported by a reporting dealer located outside Norway. For instance, if a Norwegian exporter enters into an FX trade with a bank in London, this is classified as a cross-border NOK trade.

Cross-border NOK turnover has increased over time. In the early 2000s, approximately one out of four foreign exchange trades were made with a Norwegian dealer. Advances in technology have facilitated this change, allowing Norwegian firms and institutions to trade foreign exchange with banks located abroad that may already be providing them with other financial services.

Over time, growth in NOK trading outside Norway has been strongest in the UK. In recent surveys, trading in NOK has also picked up in the US. In 2001, around 30% of NOK transactions were agreed in the UK, compared with approximately 10% in the US. By 2025, the market shares for these regions had increased to 47% and 19%, respectively. The increased NOK trading in these regions corresponds to developments in the global foreign exchange market. Today, the UK and US account for about 55% of all foreign exchange trading.

Trades in NOK are also made in other parts of the world (Chart 6). Around 3% were made in Germany, 3% in Singapore and 2% in Switzerland. Even though the share is relatively small, NOK turnover in Singapore grew from almost zero in the early 2000s to around USD 5bn per day in 2025.

Chart 6: Daily NOK trades made with reporting banks in different regions. All instruments. Percent

Turnover of all currencies traded in Norway

The section below covers all foreign exchange turnover reported in Norway, such as trades in EUR/NOK, EUR/USD, and all other currency pairs.

Norway’s foreign exchange market is the world's 25th largest, with daily turnover of around USD 23bn. By comparison, daily turnover in the UK and US stands at about USD 4 700bn and USD 2 400bn, respectively.

A decline in all foreign exchange turnover in Norway  

Foreign exchange turnover in Norway has declined from its peak in 2016 (Chart 7). Daily turnover has remained between USD 23bn and 30bn over the past three surveys. As elsewhere, foreign exchange swaps are by far the most traded instrument, followed by spot and forward contracts. In April 2025, these instruments accounted for 86%, 10%, and 4% of total turnover in Norway, respectively. The shares have remained relatively stable over time. [10]

Foreign exchange turnover in Norway is lower compared to figures from Denmark and Sweden, where daily foreign exchange transactions amount to around USD 100bn and 40bn, respectively. Norway’s daily turnover, at about USD 23bn, is similar to that of countries like Malaysia and South Africa.

Chart 7: Daily foreign exchange turnover. Norway. By instrument. In billions of USD

Large banks account for a greater share of foreign exchange turnover in Norway

Developments in the last two BIS surveys show that large banks account for a growing share of foreign exchange turnover in Norway (Chart 8). In 2025, this share reached 73%, up from 63% in 2022 and 50% in 2019. This stands in contrast to trends in global foreign exchange turnover, where large banks have maintained a stable share over the same period. According to some market participants, this development may be due to large banks' competitive rates. In addition, increased FX market volatility in this year's survey may in itself have increased the need for risk reduction between large banks in Norway.

Chart 8: Daily foreign exchange turnover. Norway. By counterparty. In billions of USD

Extensive use of payment-versus-payment in settlement

Counterparties make significant use of payment-versus-payment (PvP) solutions in the settlement of their foreign exchange transactions (Chart 9). With PvP solutions, a third party [11] ensures the foreign exchange agreed upon are not transferred until both parties in the transaction have made their payments. This reduces settlement risk for the counterparties by preventing direct, bilateral settlements where transfer timing can differ. One reason some counterparties still settle foreign exchange trades without third-party solutions seems to be that the PvP service CLS does not support the specific currency pair being traded.

Chart 9: Daily settlement of foreign exchange in Norway. By payment solution. Percent

Appendix

The BIS’s collection of foreign exchange turnover data is carried out by central banks at the national level, including Norges Bank. Commercial banks contribute by reporting their own turnover figures for the relevant survey period. This year, as in previous surveys, data were collected for all trading days in April. This is the 14th survey, with turnover figures for the foreign exchange market dating back to 1989. In this year’s survey, 52 central banks and over 1 100 reporting banks took part. In Norway, the largest banks have reported their turnover in NOK and other currencies.

Footnotes

[1] The survey covers all trading days in April 2025.  

[2] The survey covers the over-the-counter (OTC) market.  

[3] In the Appendix, figures are given in both USD and NOK.  

[4] The share for each currency sums to 200% because there are always two currencies in a transaction, eg in 2025, USD accounted for 89% of global foreign exchange turnover, while EUR accounted for 29%.  

[5]A currency swap (cross-currency basis swap) involves the exchange of notional principals and interest payments in two currencies.  

[6] https://www.bis.org/publ/bisbull105.htm

[7] The reporting dealers are referred to as "larger banks". Banks not included in the survey are referred to as "smaller banks".  

[8] Owing to a reporting error in 2016, turnover was overstated in the spot market and understated for foreign exchange swaps.  

[9] Trades agreed through person-to-person communication. Telephone, instant messaging and email are examples of voice-executed trades.  

[10] The same reporting error mentioned in connection with Chart 2 caused spot turnover in 2016 to be overstated, while foreign exchange swap turnover was understated. 

[11]  An example of such a third party, offering PvP services, is CLS.