Large foreign-exchange volumes reflect global commerce, investment and risk management—not simply speculative bets on exchange rates.
A record snapshot
Global foreign-exchange trading averaged $9.6 trillion per day in April 2025, according to the Bank for International Settlements’ Triennial Central Bank Survey, published in September 2025. That was 28% higher than the comparable April 2022 survey. The US dollar appeared on one side of 89% of transactions, while sales desks in the United Kingdom, United States, Singapore and Hong Kong SAR together accounted for 75% of global turnover. These numbers refer to an April 2025 survey snapshot, not daily activity in November 2026. [1]
What is driving activity
Foreign exchange connects international sales, overseas investments, cross-border funding and portfolio hedges. The BIS’s follow-up analysis of the 2025 survey links the sharp rise in turnover partly to volatility around trade-policy announcements and renewed demand to hedge dollar exposures. It estimates that unusually turbulent conditions added materially to transactions during the survey month. Turnover therefore measures activity, not the amount of money invested or a forecast of future currency direction. [2]
Spot, swaps and forwards
Different currency instruments meet different needs. Spot trades exchange currencies for near-term settlement. Outright forwards can help a company or fund lock in a future exchange rate. FX swaps exchange currencies now and reverse the transaction later, often supporting funding and liquidity management. In April 2025, the BIS found FX swaps remained the largest category at approximately $4 trillion in average daily turnover, while spot deals reached around $3 trillion. The choice of instrument depends on the exposure being managed and the costs and obligations involved. [1]
Why hedging matters for companies
Consider an importer expecting to pay an overseas supplier in six months. A currency move could significantly change the home-currency cost of that invoice before payment falls due. A properly designed hedge can reduce that uncertainty, although it may also limit potential gains from a favourable market move and introduce counterparty or liquidity considerations. Institutional investors face similar choices when purchasing assets denominated in currencies different from their funding or reporting currency. [2]
Risk management before prediction
The expansion of FX trading should not be mistaken for a recommendation to increase leverage or engage in short-term speculation. For treasurers and portfolio managers, prudent practice begins by identifying the underlying exposure, choosing a hedge horizon, testing stress scenarios and understanding collateral needs. Forward points, swap funding costs, liquidity and counterparty concentration all influence outcomes. A strategy that appears inexpensive under normal conditions can become harder to maintain during volatility. [2] [3]
The bigger picture
The FX market’s scale reflects how interdependent international finance has become. As trade policies and interest-rate expectations shift, the ability to manage currency exposure remains a practical business function. Understanding why trading volumes surge is more useful than treating volume alone as a directional signal. [1] [2]
References
1. BIS, 2025 Triennial FX Survey Results, September 2025. Source link
2. BIS, Global FX Markets When Hedging Takes Centre Stage, December 2025. Source link
3. IMF, Global Financial Stability Report, October 2026. Source link