Global Foreign Exchange Market Report and Forecast 2025-2034

Global Foreign Exchange Market Outlook

The global foreign exchange market size was valued at USD 812.14 billion in 2023. The market is further projected to grow at a CAGR of 6.8% between 2024 and 2032, reaching a value of USD 1476.12 billion by 2032.

Key Takeaways

• The global foreign exchange market had a significant turnover, averaging more than USD 7.5 trillion per day in April 2022.

• As per industry reports, the most traded currencies in 2022 were the US dollar, the euro, the Japanese yen, the pound sterling, and the renminbi, with the US dollar being on one side of 88% of all trades.

• The share of spot trades fell to 28% from 30% in 2019, while FX swaps accounted for 51% of global turnover, up from 49% in 2019. 

• The United States, the United Kingdom, Hong Kong SAR, Singapore, and Japan were the top jurisdictions for FX trading, accounting for 78% of all FX trading.

Technology is playing a significant role in shaping the foreign exchange market growth. Companies are leveraging technology to enhance efficiency and provide digital solutions for foreign exchange services. For example, EbixCash Limited launched the Self Booking Corporate tool for foreign exchange, offering digital services and streamlining processes for corporate clients.

The growth of the market is also being driven by the rise in international transactions. As more transactions require the exchange of foreign currency, the market is expanding. The rise in international transactions is exemplified by the World Bank's report of a 7.8% increase in remittance inflows to Europe and Central Asia in 2021, reaching USD 74 billion.

Moreover, political events, such as elections, can have a substantial impact on a country's currency. Changes in government leadership can lead to shifts in monetary and fiscal policies, influencing a currency's value. Political instability can cause currency volatility and affect market outcomes in the short term.

The emergence of cryptocurrencies has impacted the foreign exchange market share. Cryptocurrencies like Bitcoin and Ethereum are increasingly being used for international transactions, providing an alternative to traditional currencies. This trend introduces new dynamics to the foreign exchange market, influencing trading patterns.

Additionally, changes in regulations, such as increased oversight and compliance requirements, impact how foreign exchange transactions are conducted. Regulatory shifts can affect market liquidity, trading volumes, and the overall stability of the market.

Geopolitical events, such as trade disputes, Brexit, and conflicts between nations, have a significant impact on the foreign exchange market. Uncertainty stemming from geopolitical tensions can lead to currency fluctuations and affect investor sentiment. Traders closely monitor geopolitical developments as they can influence market trends and currency valuations.

Market Segmentation

Global Foreign Exchange Market Report and Forecast 2024-2032 offers a detailed analysis of the market based on the following segments:

Market Breakup by Counterparty

• Reporting Dealers

• Non-Financial Customers

• Others

Market Breakup by Type

• Currency Swap

• FX Options

• Outright Forward and FX Swaps

Market Breakup by Region

• North America

• Europe

• Asia Pacific

• Latin America

• Middle East and Africa

Competitive Landscape

Market players are acting as market makers by providing bid, ask prices to traders, and engaging in proprietary trading, trading forex on their own behalf to generate profits.

• Barclays Bank Plc 

• BNP Paribas 

• Citigroup Inc. 

• Deutsche Bank AG 

• Goldman Sachs 

• HSBC Bank plc 

• JPMorgan Chase & Co. 

• Standard Chartered Group 

• State Street Corporation 

• XTX Markets Pte Ltd 

• Others

Key Highlights of the Report