Singapore is world's fourth largest forex centre

Singapore-based financial institutions poised to capitalise growth as average daily foreign exchange turnover volume reached US$266bln.

According to the latest survey by the Bank for International Settlements (BIS), average daily foreign exchange (FX) turnover volume in Singapore was US$266 billion during April 2010 compared to US$242 billion in April 2007. The survey ranks Singapore as the fourth largest FX centre globally and the second largest FX centre in Asia, after Tokyo.

Average daily turnover in over-the-counter (OTC) interest rate derivatives was US$78 billion during April 2010, 37% higher than the US$57 billion recorded during April 2007. The survey ranks Singapore as sixth largest centre globally, up from seventh position in 2007 and underscores Singapore's development as a key derivatives trading centre in Asia, as reported by the Monetary Authority of Singapore.

The BIS Triennial Central Bank Survey – FX and Derivatives Market Activity uses a data collection approach based on the location of the sales desks. 54 banks in Singapore were involved in the survey. The Singapore Foreign Exchange Market Committee (SFEMC) carries out a semi-annual FX survey of the top 30 trading banks in Singapore.

This survey is conducted based on the location of the trading desks. The last survey done for the month of April 2010 had recorded average daily FX turnover at around US$289 billion.

Mr Ong Chong Tee, Deputy Managing Director, MAS said, "The BIS as well as the SFEMC surveys affirm Singapore's consistent growth as a key foreign exchange centre in the world and in Asia. Trading of emerging market currencies including the Singapore Dollar grew significantly. Financial institutions based in Singapore, serving the foreign exchange needs of their clients in the region and beyond, are well-placed to capitalise on this growth."