The U.S. dollar dominated the list of the most traded currencies in 2022, being involved in the vast majority of any currency trades. This is according to a ranking that looks at trading regardless of pairs. The most common forex transaction by pair in that year was the euro and the U.S. dollar, which accounted for almost 23 percent of the average daily turnover of all currency exchanges in April 2022.

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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?

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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.

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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

The euro and U.S. dollar made up more than seven of 10 SWIFT payments worldwide in 2024, outperforming many other currencies. This is according to a monthly report meant to track the market share of China's yuan renminbi within the international bank transfer system SWIFT. Although China holds the largest forex reserves in the world, the yuan ranked as the eighth-used currency in international payments. The figures concern customer-initiated and institutional payments and exclude trade. Discussions on the potential weakening role of the U.S. dollar especially touch world trade and forex. For example, the share of the USD in forex reserves declined visibly against the euro and Japanese yen in 2023. What sparked this de-dollarization trend, and will it continue? Trade sanctions and de-dollarization De-dollarization in 2023 is mentioned mostly alongside trade and the BRICS countries - an informal name given to Brazil, Russia, India, China, and South Africa. The combined GDP of BRICS is about 25 percent of the world's economy. After the start of the Ukraine war and Russia received economic sanctions, the BRICS slowly evolved into a trading bloc. The group increasingly wanted its own currency to settle payments within the trade bloc, to avoid using the U.S. dollar. In August 2023, BRICS will gather in South Africa to discuss the creation of such a new joint currency. Additionally, 19 countries - including Argentina, Algeria, Egypt, Saudi Arabia, Turkey, and Yemen - expressed interest in joining the BRICS group. CBDC, or projects into a digital payment settlement A factor of future uncertainty for the U.S. dollar is how central bank digital currencies (CBDC) develop in emerging countries. Several projects exist between individual countries that specifically target cross-border interbank payments. A cooperation between Thailand and Hong Kong, Inthanon-Lionrock, ranks as the most advanced of these projects. CBDC does not require the U.S. dollar to function. Tangible such as commodities or gold can back them. The value of transactions processed with CBDC is to grow by 260,000 percent between 2023 and 2030.

In 2023, U.S. dollar/Indian rupee (USD/INR) options had the highest trading volume of all exchange-traded currency derivatives in 2023, with 3.6 billion contracts traded on the National Stock Exchange of India. U.S. dollar/Indian rupee (USD/INR) futures followed with 788 million contracts traded on the same exchange.

The DXY decreased 0.1629 or 0.16% to 104.3841 on Thursday March 27 from 104.5470 in the previous trading session. United States Dollar - values, historical data, forecasts and news - updated on March of 2025.

Graph and download economic data for Trade Weighted U.S. Dollar Index: Other Important Trading Partners, Goods (DISCONTINUED) (TWEXO) from 1995-01-04 to 2020-01-01 about trade-weighted, trade, exchange rate, currency, goods, rate, indexes, and USA.

In 2007, the average daily turnover of foreign exchange (forex) transactions and derivatives traded in Italy had risen significantly, before dropping during the next few years. The level of foreign exchange swaps has remained stable since 2016, not experiencing a significant increase or decrease through to 2022. The most commonly traded foreign exchange instrument was foreign exchange rate swaps, which amounted to a rough value of 22 billion U.S. dollars in 2007. The least traded foreign exchange instrument was currency swaps, with the highest value of roughly 354 million U.S. dollars being recorded in 2016.

The global foreign exchange market size was valued at USD 861 Billion in 2024. Looking forward, IMARC Group estimates the market to reach USD 1,535 Billion by 2033, exhibiting a CAGR of 6.64% from 2025-2033. North America currently dominates the market, holding a significant share of 25.8% in 2024. The dominance is attributed to the rising integration of modern technology in trading platforms, the globalization of businesses resulting in the consequent need for currency exchange services, and the growing influence of various economic factors such as inflation, interest rates, and GDP growth.

IMARC Group provides an analysis of the key trends in each segment of the global foreign exchange market, along with forecast at the global, regional, and country levels from 2025-2033. The market has been categorized based on counterparty and type.

The EURUSD decreased 0.0005 or 0.04% to 1.0787 on Wednesday March 26 from 1.0791 in the previous trading session. Euro US Dollar Exchange Rate - EUR/USD - values, historical data, forecasts and news - updated on March of 2025.

Graph and download economic data for Trade Weighted U.S. Dollar Index: Major Currencies, Goods (DISCONTINUED) (TWEXM) from 1973-01-03 to 2020-01-01 about major, trade-weighted, exchange rate, currency, goods, rate, indexes, and USA.

The USDRUB decreased 0.6990 or 0.83% to 83.9215 on Wednesday March 26 from 84.6205 in the previous trading session. Russian Ruble - values, historical data, forecasts and news - updated on March of 2025.

CN: Foreign Exchange Turnover: RMB/FX Spot: BRI Currency pairs data was reported at 7,067.000 RMB mn in Feb 2025. This records a decrease from the previous number of 8,319.000 RMB mn for Jan 2025. CN: Foreign Exchange Turnover: RMB/FX Spot: BRI Currency pairs data is updated monthly, averaging 4,683.500 RMB mn from Sep 2021 (Median) to Feb 2025, with 42 observations. The data reached an all-time high of 28,496.000 RMB mn in May 2024 and a record low of 1,717.000 RMB mn in May 2022. CN: Foreign Exchange Turnover: RMB/FX Spot: BRI Currency pairs data remains active status in CEIC and is reported by China Foreign Exchange Trading Center. The data is categorized under China Premium Database’s Money Market, Interest Rate, Yield and Exchange Rate – Table CN.MD: China Foreign Exchange Trading Center (CFETC): Foreign Exchange Trading.

The foreign exchange market is the global marketplace where currencies are traded. It is the largest and most liquid financial market in the world, with an average daily trading volume of over $6.6 trillion. The market size is expected to grow to $9.3 trillion by 2033, with a CAGR of 5.5%. The value unit is million. Key drivers of the market include the increasing global trade and investment, the growth of emerging markets, and the development of new financial technologies. Trends in the market include the rise of electronic trading, the increased use of derivatives, and the growing demand for foreign exchange hedging. Restraints on the market include the volatility of currencies, the risk of currency devaluation, and the regulatory challenges associated with cross-border transactions. The segments of the market include application (reporting dealers, other financial institutions, non-financial customers), type (currency swaps, outright forward and FX swaps, FX options), and company (JPMorgan Chase, Citibank, Deutsche Bank, Barclays, Bank of America Merrill Lynch, BNP Paribas, Goldman Sachs, HSBC, Royal Bank of Scotland, UBS). Regionally, the market is divided into North America, South America, Europe, Middle East & Africa, and Asia Pacific.

China Foreign Exchange Turnover: Currency Pair: USD/JPY data was reported at 27,853.000 RMB mn in Mar 2021. This records an increase from the previous number of 16,348.000 RMB mn for Feb 2021. China Foreign Exchange Turnover: Currency Pair: USD/JPY data is updated monthly, averaging 16,348.000 RMB mn from Jan 2017 (Median) to Mar 2021, with 51 observations. The data reached an all-time high of 33,024.000 RMB mn in Mar 2020 and a record low of 5,493.000 RMB mn in Feb 2018. China Foreign Exchange Turnover: Currency Pair: USD/JPY data remains active status in CEIC and is reported by China Foreign Exchange Trading Center. The data is categorized under China Premium Database’s Money Market, Interest Rate, Yield and Exchange Rate – Table CN.MD: China Foreign Exchange Trading Center (CFETC): Foreign Currency Pair Trading.

Graph and download economic data for Nominal Major Currencies U.S. Dollar Index (Goods Only) (DISCONTINUED) (DTWEXM) from 1973-01-02 to 2019-12-31 about major, trade-weighted, exchange rate, currency, goods, rate, indexes, and USA.

The USDTRY increased 0.0464 or 0.12% to 37.9927 on Wednesday March 26 from 37.9463 in the previous trading session. Turkish Lira - values, historical data, forecasts and news - updated on March of 2025.

China Foreign Exchange Turnover: Currency Pair: USD/CAD data was reported at 4,725.000 RMB mn in Mar 2021. This records an increase from the previous number of 2,243.000 RMB mn for Feb 2021. China Foreign Exchange Turnover: Currency Pair: USD/CAD data is updated monthly, averaging 1,504.000 RMB mn from Jan 2017 (Median) to Mar 2021, with 51 observations. The data reached an all-time high of 7,837.000 RMB mn in Mar 2020 and a record low of 397.000 RMB mn in Jul 2017. China Foreign Exchange Turnover: Currency Pair: USD/CAD data remains active status in CEIC and is reported by China Foreign Exchange Trading Center. The data is categorized under China Premium Database’s Money Market, Interest Rate, Yield and Exchange Rate – Table CN.MD: China Foreign Exchange Trading Center (CFETC): Foreign Currency Pair Trading.

China Foreign Exchange Turnover: Currency Pair: AUD/USD data was reported at 13,600.000 RMB mn in Mar 2021. This records an increase from the previous number of 12,835.000 RMB mn for Feb 2021. China Foreign Exchange Turnover: Currency Pair: AUD/USD data is updated monthly, averaging 5,957.000 RMB mn from Jan 2017 (Median) to Mar 2021, with 51 observations. The data reached an all-time high of 21,945.000 RMB mn in Mar 2020 and a record low of 1,322.000 RMB mn in Feb 2018. China Foreign Exchange Turnover: Currency Pair: AUD/USD data remains active status in CEIC and is reported by China Foreign Exchange Trading Center. The data is categorized under China Premium Database’s Money Market, Interest Rate, Yield and Exchange Rate – Table CN.MD: China Foreign Exchange Trading Center (CFETC): Foreign Currency Pair Trading.

The USDCNY increased 0.0137 or 0.19% to 7.2796 on Wednesday March 26 from 7.2658 in the previous trading session. Chinese Yuan - values, historical data, forecasts and news - updated on March of 2025.

The USDBRL increased 0.0293 or 0.51% to 5.7285 on Wednesday March 26 from 5.6992 in the previous trading session. Brazilian Real - values, historical data, forecasts and news - updated on March of 2025.