Singapore, 28 Sep 2004...Singapore's average daily foreign exchange (forex) turnover reached US$125 billion for April 2004. The Bank for International Settlement's (BIS) Triennial Survey of Forex and OTC (over-the-counter) Derivatives Market Activity showed forex turnover in Singapore at US$125 billion was some 24% higher than the previous survey figure of US$101 billion in 2001. Based on the BIS Survey, Singapore remains the fourth largest forex centre in the world and the second largest centre in Asia after Tokyo.
2 BIS' figures were based on data collected in April 2004. BIS introduced changes to the 2004 survey
methodology, collecting data from sales desks instead of trading desks as it was done previously. Based on trading desk reporting, the Monetary Authority of Singapore (MAS) estimates that the average daily forex turnover in Singapore reached US$153 billion in April 2004, a 51% increase over 2001.
3 Activity rose as a number of global players centred their Asian time zone business in Singapore in recent years. The larger flows were also due to increased activity with non-financial customers. In line with global trends, there was strong growth in the volume of US dollar and Euro contracts.
4 "In addition to the robust performance seen in foreign exchange activities, our increased market share for OTC derivatives is a strong sign that the treasury sector in Singapore continues to grow in breadth," said Ong Chong Tee, Assistant Managing Director of MAS. The BIS Survey showed that daily average for OTC derivatives turnover here rose almost three-fold from US$6 billion in 2001 to US$17 billion in 2004. Singapore is now the 12th largest OTC derivatives centre globally, strengthening its position as the second largest centre in Asia.
5 The 2004 BIS global survey was the sixth since 1989. The survey aims to contribute to greater market transparency and better monitoring of global forex and OTC market activity. Singapore has participated in the triennial survey since 1992.
6 MAS also conducts a comprehensive survey to monitor the development of treasury activities in Singapore including trends in forex, interest rate and fixed income activities. The MAS survey will be released at 1000 hrs on 29 Sep 2004.