Key highlights from BIS triennial survey on foreign exchange

The Bank of International Settlements (BIS) released its triennial survey on foreign exchange and there are a lot to digest on. Below are the key highlights -

• The euro’s share in OTC foreign exchange turnover declined to 31.3 percent, down from 33.4 percent seen in 2013 and down from 39.1 percent seen in 2010. The share of Australian dollar declined from 8.6 percent in 2013 to just 6.9 percent as of April 2016. The influence of the yuan has increased and the rise has been quite rapid. Its share grew to 4 percent compared to 2.2 percent in 2013 and 0.5 percent in 2007.
   
• Another important point to note has been the geographical distribution of OTC foreign exchange turnover. London remains the king, but its share has declined for the first time in decades. In 2013, UK’s share was 40.8 percent but in 2016 it dropped to 37.1 percent. The Share of United States increased from 18.9 percent to 19.4 percent. However, a major chunk of UK’s businesses was taken away by Asia. The share of Singapore rose from 5.7 percent to 7.9 percent. The share of Hong Kong rose from 4.1 percent to 6.7 percent. The share of Japan increased by half a percent to 6.1 percent. The rise of the yuan likely to have played a major role along with political uncertainties in the UK