Annual Report 2000/2001


Foreign Exchange Market

Foreign Exchange Transactions

The average daily foreign exchange turnover in Singapore for 2000 was slightly below US$100 billion. This was a 18.3% decline from 1999, reflecting the lower exchange rate volatility in many Asian currencies, particularly the Yen. In addition, with the increased importance of merger and acquisition-related foreign exchange flows, trading in the US Dollar and Euro gravitated towards the London/New York time-zones.

Although there was a general decline in trading volumes, Singapore's foreign exchange market continued to be international in nature and the major currency pairs (US$/YEN,EUR/US$ and STG/US$) continued to dominate activities. US$/S$ accounted for about 6.0% of total turnover in 2000.

Currency Options

The volume of currency options traded in 2000 averaged about US$49.1 billion per month, a 30.7% decline from the year earlier. The lower volume was due to the lower exchange rate volatility and a smaller investor community. The Yen, Euro and Australian Dollar accounted for about 70.3% of the total volume of currency options traded.


 

[The Financial Sector: Growth and Performance] [Review of the Financial Sector] [Banking] [Insurance] [Equity and Derivatives Markets] [Debt Market] [Foreign Exchange Market]

[Table Of Contents]