What is the BIS Forex Turnover Survey?
The Bank for International Settlements (BIS) Triennial Central Bank Survey is a comprehensive study of global foreign exchange (FX) and over-the-counter (OTC) derivatives markets. Conducted every three years since 1989, it collects data from central banks and other monetary authorities, covering trading volumes, currency composition, instruments, and counterparty types. The survey is widely regarded as the most reliable and comprehensive source of information on the size and structure of the global forex market.
The 2022 survey, published in October 2022, showed that average daily turnover in the global forex market reached $7.5 trillion, up from $6.6 trillion in 2019 — a 14% increase. This growth was driven by heightened activity in spot and swap markets, reflecting increased hedging and speculative interest amid global economic uncertainty.
How the Survey Works & Key 2022 Findings
Methodology
The survey is conducted by the BIS in collaboration with central banks from around 50 jurisdictions. Data is collected from a representative sample of commercial banks, financial institutions, and other market participants. The survey measures turnover in the spot, outright forward, foreign exchange swap, currency swap, and options markets, broken down by currency pair, instrument type, and counterparty (e.g., reporting dealers, other financial institutions, non-financial customers).
2022 Headline Figures
- Total daily turnover: $7.5 trillion (up from $6.6 trillion in 2019).
- Spot market: $2.1 trillion (28% of total), down from 30% in 2019.
- Foreign exchange swaps: $3.8 trillion (51% of total), up from 49%.
- Outright forwards: $1.2 trillion (16% of total).
- Currency swaps and options: the remainder.
- USD remains dominant: involved in 88% of all transactions.
- Top currency pairs: USD/EUR (23%), USD/JPY (13%), USD/GBP (9.6%).
- Geographic distribution: UK (38% of global turnover), US (19%), Singapore (9%), Hong Kong (7%), Japan (4.5%).
The data underscores the continuing importance of the US dollar, the growing role of emerging market currencies, and the shift toward swap instruments as a primary hedging tool.
Practical Use Cases for Traders and Analysts
The BIS turnover data is not just a headline number; it provides actionable insights for various market participants:
📈 1. Liquidity Assessment
Knowing which currency pairs have the highest turnover helps traders choose markets with tighter spreads and lower execution risk. For example, USD/EUR and USD/JPY are highly liquid, while exotic pairs may be less so.
📊 2. Strategy Formulation
Traders can align their strategies with the most active sessions and instruments. For instance, the dominance of swaps suggests that interest rate differentials are a major driver of volume.
🔄 3. Risk Management
Institutional traders use the survey to gauge market depth and potential slippage during periods of low liquidity. It also helps in setting appropriate position sizes.
💳 4. Broker Selection
Traders can evaluate brokers based on the liquidity providers they access. Brokers that aggregate from the top banks (which are major survey participants) may offer better execution.
For example, a trader focusing on emerging market currencies might note that the 2022 survey showed a rise in turnover for the Chinese renminbi (RMB) and Mexican peso, indicating increasing depth in these markets.
Evaluation Criteria: How to Interpret the Data
When using BIS turnover data, consider the following criteria to derive meaningful insights:
- Growth rate: Compare the 2022 figure with previous surveys to identify trends in market expansion or contraction.
- Instrument mix: A shift toward swaps may indicate increased hedging activity, while a rise in spot turnover might suggest speculative interest.
- Currency concentration: The USD’s dominance (88%) means that most pairs involve the dollar. However, the rise of the RMB (up from 2% to 4% share) is noteworthy.
- Geographic distribution: The concentration of turnover in London and New York reflects the importance of those time zones for liquidity.
- Counterparty breakdown: The share of other financial institutions (hedge funds, pension funds, etc.) has grown, indicating greater participation from non-bank actors.
The FINRA Investor Education Foundation highlights that investors should understand the structure of the market they are trading in, and BIS data provides that structural overview. However, always supplement with real-time market indicators like order book depth and spread data.
Comparison Table: 2022 vs. Previous Surveys
The following table shows the evolution of daily turnover across key segments:
| Segment | 2022 ($ trillion) | 2019 ($ trillion) | 2016 ($ trillion) | % Change 2022 vs 2019 |
|---|---|---|---|---|
| Total | 7.5 | 6.6 | 5.1 | +14% |
| Spot | 2.1 | 2.0 | 1.7 | +5% |
| Swaps | 3.8 | 3.2 | 2.4 | +19% |
| Outright Forwards | 1.2 | 1.0 | 0.7 | +20% |
| Options & Others | 0.4 | 0.4 | 0.3 | 0% |
Data sourced from the BIS Triennial Survey. Percentages are approximate. Note that growth in swaps and forwards reflects increased demand for hedging and interest rate management.
Practical Checklist for Using the Data
When incorporating BIS turnover data into your analysis, use this checklist:
- Identify the currency pairs you trade and check their turnover rank and share in the latest survey.
- Compare the instrument mix (spot vs. swaps) to understand what drives volume in your chosen pairs.
- Check the geographical distribution to know during which sessions liquidity is highest.
- Monitor the trend in emerging market currencies to spot new opportunities.
- Cross-reference with central bank policy announcements that may affect the surveyed data.
- Use the data to set realistic expectations for bid-ask spreads and slippage.
- Combine with real-time data from your broker or liquidity provider to validate assumptions.
Example Scenario: Applying Turnover Data
Scenario: A retail trader in Europe is considering trading the USD/TRY (US dollar vs. Turkish lira) pair because they heard it has high volatility.
Action: The trader looks up the BIS 2022 data and finds that USD/TRY turnover is relatively low compared to major pairs, and its share is not in the top 10. They also check the survey's counterparty breakdown and see that the lira is less traded among global reporting dealers.
Outcome: The trader realises that USD/TRY may have wider spreads and higher slippage risk. They decide to focus on more liquid pairs like EUR/USD or USD/JPY, which have deep markets and tighter trading costs. They still consider USD/TRY for occasional swing trades, but with smaller position sizes and wider stops.
Lesson: Using BIS turnover data helps traders avoid illiquid markets that may look appealing on the surface but carry hidden execution risks.
Common Mistakes
⚠ Common Misinterpretations
- Assuming high turnover means low volatility: High turnover often correlates with lower spreads, but volatility can still be high (e.g., during news). Turnover is about volume, not price fluctuation.
- Using historical data for real-time decisions: The BIS survey is a triennial snapshot; it does not capture daily fluctuations. Relying on it for short-term trading is inappropriate.
- Overlooking the counterparty mix: The survey shows that the bulk of volume is from institutional players. Retail traders should not assume they can trade the same sizes or at the same spreads as banks.
- Ignoring the growth of emerging markets: Some traders still focus only on majors, missing opportunities in currencies that are gaining turnover and liquidity.
- Misjudging the importance of geographic concentration: The high concentration of turnover in London means that during its session, liquidity is highest, but outside those hours, spreads may widen significantly.
Risks and Limitations
⚠ Risk Warning
The BIS turnover data is a valuable reference, but it is historical and aggregated. It does not reflect real-time liquidity conditions, market depth, or execution quality. Relying solely on this data for trading decisions can lead to false assumptions about current market behaviour.
The CFTC and NFA caution that retail forex traders should always consider current market conditions, including spreads, margin requirements, and volatility. The BIS data does not account for leverage, which can magnify both gains and losses. Also, the survey does not cover OTC derivatives that are not reported to central banks, so it may understate actual turnover.
Risk controls to implement:
• Always combine BIS data with real-time indicators (order books, volume bars, spread monitors).
• Use the data for strategic asset allocation and long-term planning, not for entry/exit timing.
• Verify current liquidity conditions with your broker before executing significant trades.
• Understand that the composition of turnover changes over time; the 2022 data is a baseline, but the next survey may show different patterns.
• Be aware that central bank interventions or geopolitical events can rapidly alter market structure, rendering historical data less relevant.
This guide is for educational purposes only and does not constitute financial, legal, or tax advice. Always verify current rules, fees, spreads, rates, broker availability, and platform terms with the relevant authority or provider. The BIS data is publicly available but should be interpreted with caution.
Frequently Asked Questions
Q: What is the BIS forex turnover survey?
The BIS Triennial Central Bank Survey is a global study of foreign exchange and over-the-counter derivatives markets, conducted every three years by the Bank for International Settlements. It provides the most comprehensive data on market size, structure, and activity.
Q: What was the daily forex turnover in 2022 according to BIS?
The BIS 2022 survey reported that global daily forex turnover reached $7.5 trillion, up from $6.6 trillion in 2019, marking a 14% increase. This includes spot, forwards, swaps, and options.
Q: Which currency pair has the highest turnover?
The USD/EUR pair remains the most actively traded, accounting for about 23% of total daily volume. The USD/JPY and USD/GBP pairs follow closely.
Q: How can traders use BIS turnover data?
Traders use the data to gauge market liquidity, identify which pairs are most active, understand the dominance of certain currencies, and assess the impact of central bank policies on market depth.
Q: Is the BIS survey reliable?
Yes, it is the most authoritative source of forex market data. It is compiled from central banks and major financial institutions worldwide, and is widely referenced by policy makers, academics, and market participants.
Q: What are the risks of relying on BIS data for trading?
The data is historical and reported annually (every three years). Market conditions change rapidly, and the survey may not reflect current liquidity or volatility. It should be used as a guide, not a real-time indicator.
Q: How does the 2022 turnover compare to 2019?
The 2022 turnover of $7.5 trillion represents a 14% increase from 2019's $6.6 trillion. Growth was driven by increased activity in spot and swaps, particularly in emerging market currencies.
Q: Where can I find the full BIS report?
The full report is available on the BIS website (www.bis.org). They publish the Triennial Survey results and supplementary statistical tables for free.