Snapshot img

Foreign Exchange Market Size 2025-2029

The foreign exchange market size is forecast to increase by USD 582 billion at a CAGR of 10.6% between 2024 and 2029.

The market continues to evolve, driven by several key trends and challenges. One significant trend is the increasing use of money transfer agencies, venture capital investments, and mutual funds in foreign exchange transactions. The Internet of Things (IoT) and artificial intelligence (AI) revolutionize banking and financial services, enabling real-time personal finance software and content delivery for travelers and businesses. The uncertainty of future exchange rates fuels the demand for 24x7 trading opportunities. As urbanization progresses and digitalization becomes more prevalent, the market is expected to grow, offering numerous opportunities for businesses and investors.

What will be the Size of the Foreign Exchange Market During the Forecast Period?

Request Free Sample

The market, also known as the forex or FX market, is a decentralized global market for the trading of currencies. It facilitates the conversion of one currency into another for various reasons, including international trade, tourism, hedging, speculation, and investment. Participants in this market include financial institutions, non-financial customers, individuals, retailers, corporate institutes, and central banks. Currencies are traded 24 hours a day, five days a week, due to the presence of multiple time zones and the interbank network.
Currency swaps, interest rate differentials, monetary interventions, economic indicators, political developments, and investment flows are some of the key drivers influencing the market. International trade, balance of payments, and economic instability in various countries also significantly impact currency values. Speculation and hedging activities, particularly by corporations and financial institutions, contribute to the volatility of currency rates. The market is increasingly leveraging artificial intelligence and Internet of Things technologies to optimize trading strategies, with mutual funds utilizing these advancements to enhance portfolio performance and manage currency risk more efficiently. The forex market plays a crucial role in facilitating international business transactions and managing risks associated with currency fluctuations.

How is this Foreign Exchange Industry segmented and which is the largest segment?

The industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.TypeReporting dealersFinancial institutionsNon-financial customersTrade Finance InstrumentsCurrency swapsOutright forward and FX swapsFX optionsCounterpartyReporting DealersOther Financial InstitutionsNon-Financial CustomersGeographyNorth AmericaCanadaUSEuropeGermanyUKAPACChinaIndiaJapanSouth AmericaBrazilMiddle East and Africa

By Type Insights

The reporting dealers segment is estimated to witness significant growth during the forecast period. The market, also known as Forex or FX, is a global financial market where participants buy, sell, and exchange currencies. This market involves various market participants, including financial institutions, non-financial customers, and corporations. Currency swaps, individuals, retailers, corporates, hedge funds, wealth managers, and foreign exchange services are among the key players. The markets facilitate international trade and investment flows, with economic indicators, political developments, inflationary pressures, and interest rate differentials influencing currency values. Monetary interventions, speculation, and risk appetite are also significant factors.
Modern technology and electronic platforms have increased efficiency and accessibility, enabling 24-hour operation. Currency exchange services, monetary policies, and regulations, including those by central banks, impact the market. Economic events, financial crises, and strategic corporate activities can cause volatility. Hedging strategies, accessible platforms, and personal finance considerations are essential for individual investors, small businesses, and multinational corporations dealing with major currency pairs. Online trading platforms and trade balances are crucial for managing currency risks in an increasingly globalized business environment.

Get a glance at the market report of share of various segments Request Free Sample

The Reporting dealers segment was valued at USD 278.60 billion in 2019 and showed a gradual increase during the forecast period.

Currency pairs are the foundation of forex trading, with spot trading being one of the most common methods of buying and selling currencies. Forward contracts and swap deals offer traders the ability to lock in exchange rates for future transactions, managing ris

A graphic that displays the dollar performance against other currencies reveals that economic developments had mixed results on currency exchanges. The third quarter of 2023 marked a period of disinflation in the euro area, while China's projected growth was projected to go up. The United States economy was said to have a relatively strong performance in Q3 2023, although growing capital market interest rate and the resumption of student loan repayments might dampen this growth at the end of 2023. A relatively weak Japanese yen Q3 2023 saw pressure from investors towards Japanese authorities on how they would respond to the situation surrounding the Japanese yen. The USD/JPY rate was close to 150, whereas analysts suspected it should be around 90 given the country's purchase power parity. The main reason for this disparity is said to be the differences in central bank interest rates between the United States, the euro area, and Japan. Any future aggressive changes from, especially the U.S. Fed might lower those differences. Financial markets responded somewhat disappoint when Japan did not announce major plans to tackle the situation. Potential rent decreases in 2024 Central bank rates peak in 2023, although it is expected that some of these will decline in early 2024. That said, analysts expect overall policies will remain restrictive. For example, the Bank of England's interest rate remained unchanged at 5.25 percent in Q3 2023. It is believed the United Kingdom's central bank will ease its interest rate in 2024 but less than either the U.S. Fed or the European Central Bank. This should be a positive development for the pound compared to either the euro or the dollar.

Foreign Exchange Reserves in China increased to 3227000 USD Million in February from 3209000 USD Million in January of 2025. This dataset provides - China Foreign Exchange Reserves - actual values, historical data, forecast, chart, statistics, economic calendar and news.

Key information about United States Foreign Exchange Reserves

• United States Foreign Exchange Reserves was measured at 34.9 USD bn in Dec 2024, compared with 35.8 USD bn in the previous month
• US Foreign Exchange Reserves: USD mn data is updated monthly, available from Mar 1961 to Dec 2024
• The data reached an all-time high of 54.9 USD bn in Aug 2011 and a record low of 2.0 USD mn in Jul 1975

• In the latest reports, US Foreign Exchange Reserves equaled 0.1 Months of Import in Dec 2024.
• Its Money Supply M2 increased 21,533.8 USD bn YoY in Dec 2024.
• US Domestic Credit reached 30,648.3 USD bn in Mar 2024, representing an drop of 0.3 % YoY.
• The country's Non Performing Loans Ratio stood at 1.5 % in Sep 2024, compared with the ratio of 1.4 % in the previous quarter.
• Household Debt of US reached 62.3 % in Sep 2024, accounting for 62.3 % of the country's Nominal GDP.

Graph and download economic data for Nominal Advanced Foreign Economies U.S. Dollar Index (DTWEXAFEGS) from 2006-01-02 to 2025-03-21 about trade-weighted, foreign, exchange rate, currency, goods, services, rate, indexes, and USA.

Indonesia Forex: Aggregate Transaction: Options: Call: Foreign Currency-Foreign Currency: 1 week data was reported at 0.486 USD mn in 21 Aug 2019. This records an increase from the previous number of 0.205 USD mn for 20 Aug 2019. Indonesia Forex: Aggregate Transaction: Options: Call: Foreign Currency-Foreign Currency: 1 week data is updated daily, averaging 0.599 USD mn from Jan 2017 (Median) to 21 Aug 2019, with 632 observations. The data reached an all-time high of 24.445 USD mn in 12 Sep 2018 and a record low of 0.000 USD mn in 02 Jul 2019. Indonesia Forex: Aggregate Transaction: Options: Call: Foreign Currency-Foreign Currency: 1 week data remains active status in CEIC and is reported by Bank of Indonesia. The data is categorized under Indonesia Premium Database’s Financial Market – Table ID.ZE001: Foreign Exchange Transaction.

Indonesia FX: All Counterparts: BI: TOD: USD: Turnover data was reported at 1.241 USD bn in 21 Aug 2019. This records an increase from the previous number of 983.425 USD mn for 20 Aug 2019. Indonesia FX: All Counterparts: BI: TOD: USD: Turnover data is updated daily, averaging 914.412 USD mn from Jun 2001 (Median) to 21 Aug 2019, with 4421 observations. The data reached an all-time high of 6.014 USD bn in 09 May 2011 and a record low of 0.200 USD mn in 31 Dec 2001. Indonesia FX: All Counterparts: BI: TOD: USD: Turnover data remains active status in CEIC and is reported by Bank of Indonesia. The data is categorized under Daily Database’s Foreign Exchange Rates – Table ID.ZE001: Foreign Exchange Transaction. The summation of all TOD transaction in USD-IDR currency pair. TOD transaction: Forex transaction which completed in the same day.

Indonesia Forex: Aggregate Transaction: Options: Call: Foreign Currency-Foreign Currency: 2 weeks data was reported at 0.000 USD mn in 21 Aug 2019. This records a decrease from the previous number of 1.328 USD mn for 20 Aug 2019. Indonesia Forex: Aggregate Transaction: Options: Call: Foreign Currency-Foreign Currency: 2 weeks data is updated daily, averaging 0.586 USD mn from Jan 2017 (Median) to 21 Aug 2019, with 632 observations. The data reached an all-time high of 15.212 USD mn in 26 Jul 2019 and a record low of 0.000 USD mn in 21 Aug 2019. Indonesia Forex: Aggregate Transaction: Options: Call: Foreign Currency-Foreign Currency: 2 weeks data remains active status in CEIC and is reported by Bank of Indonesia. The data is categorized under Indonesia Premium Database’s Financial Market – Table ID.ZE001: Foreign Exchange Transaction.

Indonesia Forex: Aggregate Transaction: Forwards: Foreign Currency-IDR: >6 months data was reported at 0.432 USD mn in 21 Aug 2019. This records an increase from the previous number of 0.000 USD mn for 20 Aug 2019. Indonesia Forex: Aggregate Transaction: Forwards: Foreign Currency-IDR: >6 months data is updated daily, averaging 0.051 USD mn from Jan 2017 (Median) to 21 Aug 2019, with 632 observations. The data reached an all-time high of 16.176 USD mn in 25 Apr 2017 and a record low of 0.000 USD mn in 20 Aug 2019. Indonesia Forex: Aggregate Transaction: Forwards: Foreign Currency-IDR: >6 months data remains active status in CEIC and is reported by Bank of Indonesia. The data is categorized under Indonesia Premium Database’s Financial Market – Table ID.ZE001: Foreign Exchange Transaction.

One United States dollar was worth over 15,000 Indonesian rupiah in March 2024, the highest value in a comparison of over 50 different currencies worldwide. All countries and territories shown here are based on the Big Mac Index - a measurement of how much a single Big Mac is worth across different areas in the world. This exchange rate comparison reveals a strong position of the dollar in Asia and Latin America. Note, though, that several of the top currencies shown here do not rank among the most traded. The quarterly U.S. dollar exchange rate against the 10 biggest forex currencies only contains the Korean won and the Japanese yen.

Foreign Exchange Reserves in Honduras decreased to 7769.40 USD Million in January from 7860.40 USD Million in December of 2024. This dataset provides - Honduras Foreign Exchange Reserves- actual values, historical data, forecast, chart, statistics, economic calendar and news.

In 2024, Belarus remains the leader in Central and Eastern Europe with a remarkable share of gold in foreign exchange reserves at 50.72 percent, significantly higher than Hungary's 19.88 percent and Slovakia's 18.98 percent. Other countries, such as Poland and Serbia, follow with shares of 16.85 percent and 13.25 percent, respectively.

Foreign Exchange Reserves in Indonesia decreased to 154500 USD Million in February from 156100 USD Million in January of 2025. This dataset provides the latest reported value for - Indonesia Foreign Exchange Reserves - plus previous releases, historical high and low, short-term forecast and long-term prediction, economic calendar, survey consensus and news.

Foreign Exchange Reserves in Thailand increased to 244800 USD Million in February from 242100 USD Million in January of 2025. This dataset provides - Thailand Foreign Exchange Reserves - actual values, historical data, forecast, chart, statistics, economic calendar and news.

Argentina Forex: Spot: Central Bank Reference Rate: United States Dollar data was reported at 1,058.360 USD/ARS in Feb 2025. This records an increase from the previous number of 1,041.930 USD/ARS for Jan 2025. Argentina Forex: Spot: Central Bank Reference Rate: United States Dollar data is updated monthly, averaging 3.505 USD/ARS from Jan 1992 (Median) to Feb 2025, with 398 observations. The data reached an all-time high of 1,058.360 USD/ARS in Feb 2025 and a record low of 1.000 USD/ARS in Dec 2001. Argentina Forex: Spot: Central Bank Reference Rate: United States Dollar data remains active status in CEIC and is reported by Central Bank of Argentina. The data is categorized under Global Database’s Argentina – Table AR.M012: Foreign Exchange Rates.

Serbia Forex Market: Turnover: Foreign Exchange: Between Banks & NBS: Spot data was reported at 30.000 EUR mn in Oct 2018. This records an increase from the previous number of 25.000 EUR mn for Sep 2018. Serbia Forex Market: Turnover: Foreign Exchange: Between Banks & NBS: Spot data is updated monthly, averaging 108.800 EUR mn from Jan 2009 (Median) to Oct 2018, with 118 observations. The data reached an all-time high of 495.000 EUR mn in Dec 2014 and a record low of 0.000 EUR mn in May 2015. Serbia Forex Market: Turnover: Foreign Exchange: Between Banks & NBS: Spot data remains active status in CEIC and is reported by National Bank of Serbia. The data is categorized under Global Database’s Serbia – Table RS.Z005: Foreign Exchange Market: Turnover.

Forex: Bank of Russia: Nominal Growth Rate: MoM: Euro data was reported at -1.700 % in Dec 2018. This records a decrease from the previous number of 0.600 % for Nov 2018. Forex: Bank of Russia: Nominal Growth Rate: MoM: Euro data is updated monthly, averaging 0.000 % from Jan 2005 (Median) to Dec 2018, with 168 observations. The data reached an all-time high of 14.700 % in Apr 2015 and a record low of -16.200 % in Dec 2014. Forex: Bank of Russia: Nominal Growth Rate: MoM: Euro data remains active status in CEIC and is reported by The Central Bank of the Russian Federation. The data is categorized under Russia Premium Database’s Interest and Foreign Exchange Rates – Table RU.ME006: Foreign Exchange Growth Rates: Bank of Russia.

Forex: Banco de Mexico: USD Settlement Rate: Period End data was reported at 19.378 MXN/USD in Mar 2019. This records an increase from the previous number of 19.261 MXN/USD for Feb 2019. Forex: Banco de Mexico: USD Settlement Rate: Period End data is updated monthly, averaging 7.974 MXN/USD from Jan 1976 (Median) to Mar 2019, with 519 observations. The data reached an all-time high of 20.791 MXN/USD in Jan 2017 and a record low of 0.012 MXN/USD in Aug 1976. Forex: Banco de Mexico: USD Settlement Rate: Period End data remains active status in CEIC and is reported by Bank of Mexico. The data is categorized under Global Database’s Mexico – Table MX.M005: Foreign Exchange Rates.

Indonesia Forex: Aggregate Transaction: Swaps: USD-IDR: 2 weeks data was reported at 15.083 USD mn in 21 Aug 2019. This records a decrease from the previous number of 45.578 USD mn for 20 Aug 2019. Indonesia Forex: Aggregate Transaction: Swaps: USD-IDR: 2 weeks data is updated daily, averaging 45.002 USD mn from Feb 2011 (Median) to 21 Aug 2019, with 1908 observations. The data reached an all-time high of 958.027 USD mn in 21 Jun 2017 and a record low of 0.000 USD mn in 14 Aug 2019. Indonesia Forex: Aggregate Transaction: Swaps: USD-IDR: 2 weeks data remains active status in CEIC and is reported by Bank of Indonesia. The data is categorized under Indonesia Premium Database’s Financial Market – Table ID.ZE001: Foreign Exchange Transaction.

Czech Republic Forex: CNB: Former EMU Currency: Monthly Avg: Luxembourg Franc data was reported at 62.161 100 LUF/CZK in Feb 2025. This records a decrease from the previous number of 62.376 100 LUF/CZK for Jan 2025. Czech Republic Forex: CNB: Former EMU Currency: Monthly Avg: Luxembourg Franc data is updated monthly, averaging 67.966 100 LUF/CZK from Jan 1993 (Median) to Feb 2025, with 386 observations. The data reached an all-time high of 94.763 100 LUF/CZK in Dec 1997 and a record low of 58.102 100 LUF/CZK in Apr 2023. Czech Republic Forex: CNB: Former EMU Currency: Monthly Avg: Luxembourg Franc data remains active status in CEIC and is reported by Czech National Bank. The data is categorized under Global Database’s Czech Republic – Table CZ.M011: Foreign Exchange Rate.