Global foreign exchange trading surged to a record average of $9.6 trillion per day in April 2025, a significant 28% increase from three years prior. According to a comprehensive triennial survey by the Bank for International Settlements (BIS), this spike was largely driven by market volatility following new U.S. trade tariff announcements.
The report, which gathers data from central banks and financial institutions across 52 countries, confirms the U.S. dollar's continued dominance in global markets. However, it also highlights notable shifts, including the continued rise of the Chinese yuan and a decline in the market share of the British pound.
Key Takeaways
- Daily foreign exchange trading volume reached a new high of $9.6 trillion in April 2025, up 28% from 2022.
- The U.S. dollar remains the most traded currency, involved in 89% of all transactions.
- China's yuan increased its market share to 8.5%, continuing its upward trend.
- The British pound's share of trading fell to 10.2%, below its recent average of 13%.
- London has reinforced its position as the world's primary hub for currency trading.
Record Trading Activity Amid Market Uncertainty
The Bank for International Settlements released its latest survey on the foreign exchange market, revealing an unprecedented level of daily trading activity. The average daily turnover of $9.6 trillion in April 2025 represents a substantial increase from the $7.5 trillion recorded in the previous survey in April 2022.
According to the BIS, the primary catalyst for this surge was heightened market volatility. The report specifically points to the announcement of U.S. trade tariffs in early April 2025 as a key driver. Such policy changes often lead to increased currency hedging and speculative trading as investors and corporations look to manage risk and capitalize on price swings.
This period of activity follows a previous spike in 2022, which was attributed to the market instability caused by Russia's full-scale invasion of Ukraine. The latest figures suggest that geopolitical and economic policy announcements continue to be major drivers of FX market volume.
About the BIS Triennial Survey
The BIS Triennial Central Bank Survey of Foreign Exchange and Over-the-Counter (OTC) Derivatives Markets is the most comprehensive source of information on the size and structure of global currency and derivatives markets. Conducted every three years since 1986, it provides a crucial snapshot of market trends by collecting data from more than 1,100 banks and dealers worldwide.
U.S. Dollar Dominance Endures
Despite ongoing discussions about the potential decline of the U.S. dollar's status as the world's reserve currency, the BIS survey shows its dominance remains firmly intact. The dollar was on one side of 89% of all currency trades in April 2025, a figure consistent with previous surveys.
The report notes that uncertainty surrounding U.S. policy actually contributed to increased trading of the dollar. As the dollar depreciated, many asset managers with exposure to U.S. assets moved to protect their portfolios from further losses. This led to a sharp increase in the use of dollar forward contracts, which allow traders to lock in a future exchange rate.
"The dollar's depreciation led asset managers with U.S. exposure to limit further FX losses on their portfolios by selling dollar forward contracts, turnover in which was sharply higher than in 2022," the BIS report stated.
This hedging activity underscores the dollar's central role in the global financial system, where its movements have a cascading effect that prompts action from investors worldwide.
Winners and Losers in Currency Market Share
While the dollar's position is stable, the survey highlights significant shifts among other major currencies. The Chinese yuan has continued its steady ascent, capturing a larger share of the global market.
The Rise of the Yuan
Trading in the Chinese yuan increased its share of global FX turnover to 8.5%, up from 7% in 2022. This growth reflects China's expanding role in global trade and the gradual internationalization of its currency. As more international transactions are settled in yuan, its importance in the FX market is expected to continue growing.
Sterling and Euro See Declines
In contrast, some of Europe's major currencies lost ground. The euro's share of trading fell by nearly two percentage points to just under 29%. The British pound experienced a more pronounced drop, with its market share slumping to 10.2%. This is a notable decrease from its average of around 13% over the past three surveys.
The decline in sterling's share has reignited discussions about its long-term standing as a major reserve currency, particularly amid ongoing concerns about the United Kingdom's public debt levels.
Currency Market Share Breakdown (April 2025)
- U.S. Dollar (USD): 89%
- Euro (EUR): 29%
- British Pound (GBP): 10.2%
- Chinese Yuan (CNY): 8.5%
Note: Percentages sum to 200% because two currencies are involved in each transaction.
Global Trading Hubs and Derivatives Market
The geography of foreign exchange trading remains highly concentrated. The survey found that trading desks in just four locations—the United Kingdom, the United States, Singapore, and Hong Kong—accounted for 75% of all global currency trading. London solidified its position as the single largest hub for FX activity.
Beyond currency spot markets, the report also detailed a massive surge in over-the-counter (OTC) interest rate derivatives trading. The daily turnover in this segment reached $7.9 trillion, a 59% increase since the 2022 survey.
Interestingly, this market showed signs of a shift away from the dollar. Trading in euro-denominated contracts nearly doubled, reaching $3 trillion and accounting for 38% of the global total, the highest share. Activity in yen-denominated derivatives also exploded, soaring by 684% to represent 5.2% of global turnover. This surge is linked to the Bank of Japan's policy shift, which began raising interest rates in 2024 after years of negative rates.
