BIS Quarterly Review, December 2022

Triennial Survey results uncover shifts in trading activity in global foreign exchange and over-the-counter derivatives markets and identify risks.

BIS Quarterly Review  | 
5 December 2022
Persistent risks in foreign exchange trades, hidden dollar debt
2 Dec 2022 Media briefing on the BIS Quarterly Review, December 2022

Claudio Borio and Hyun Song Shin brief the media on the key takeaways of the BIS December 2022 Quarterly Review and answer questions about FX markets, liquidity conditions, monetary policy and crypto assets.


Changes in the anticipated monetary stance and in the economic outlook continued to shape financial markets in the review period.


Special features

Foreword: OTC foreign exchange and interest rate derivatives markets through the prism of the Triennial Survey

Five articles in this special edition of the BIS Quarterly Review provide new insights about foreign exchange (FX) and over-the-counter derivatives markets by drawing on the data compiled in the 2022 BIS Triennial Central Bank Survey. 


The post-Libor world: a global view from the BIS derivatives statistics

The transition from Libor to "nearly risk-free" rates (RFRs) has led to structural changes that have reshaped the trading and hedging behaviour of participants in fixed income markets.


The global foreign exchange market in a higher-volatility environment

Turnover in global foreign exchange (FX) averaged more than $7.5 trillion per day in April 2022 amid a volatile market environment.


The internationalisation of EME currency trading

The participation of non-residents in foreign exchange (FX) markets for emerging market economy (EME) currencies has increased to the point where these markets are almost as internationalised as those for advanced economy (AE) currencies.


Dollar debt in FX swaps and forwards: huge, missing and growing

FX swaps, forwards and currency swaps create forward dollar payment obligations that do not appear on balance sheets and are missing in standard debt statistics.


FX settlement risk: an unsettled issue

Authors:  Marc Glowka and Thomas Nilsson

FX settlement risk, the risk that one party to a currency trade fails to deliver the currency owed, can result in significant losses and undermine financial stability.