Forex Trading Reaches New High At $130 Trillion In 2024
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A report from the Bank of International Settlements revealed that global forex trading grew to $130 trillion by the middle of this year. This result was a 10% increase compared to last year. The rise was driven by yen trades as traders got ready for possible changes in Japan’s money rules.
Yen trades showed the highest growth, increasing 26% in the first half of the year. The new report highlighted that in U.S. dollars, yen trading grew by 13%. Experts said this fast growth occurred because traders thought Japan might change its negative interest rate policy. This led to more active trading on yen during this time.
Forex Trading Hit $130 Trillion This Year
The total value of forex trading this year alone reached $130 trillion, which is much higher than the $118 trillion recorded last year. The latest report shows that a large part of the growth came from non-bank traders. These traders used more forex swaps and forwards to handle different risks from unexpected changes in currencies.
The Bank of International Settlements said other currencies grew by 10% this year, but the U.S. dollar remained the most traded currency. It revealed that a large number of trades were executed using the U.S. dollar. This kept it in the top spot. The dollar continues to lead in global forex markets.
According to the report, the total over-the-counter trading in all markets hit $726 trillion by the middle of this year, which is a 2% increase compared to last year. Trades based on interest rates, which are the largest part of these markets, grew by only 1%. Trading experts said this happened because central banks slowed down how often they raised interest rates.
Oil Trading Increases After Shipping Issues
According to the update, oil trades increased by 21% in the first part of this year. Many experts who did not expect such a large rise said the growth surprised them. This increase was due to problems with shipping in the Red Sea, and traders have shared concerns and are worried about how this could change oil prices.
At the same time, the value of all trades in the Forex market dropped by 7% in the first half of the year. This value shows the level of risk in the market. Experts said this drop means the market is now safer and calmer for traders. With fewer risks, trading became steadier, and people felt more confident.
The rise in oil trades and the lower market risk show how traders respond to events. Problems like the Red Sea shipping troubles can lead to sudden changes in trading as people try to avoid losses and stay ready for surprises.
Much of the rise in forex trading came from traders focusing on Japan’s money policies. Many expect the Bank of Japan to adjust its negative interest rates, leading to more yen trades. The interest in Japan caused the yen to become the fastest-growing currency this year.
