FX turnover declines 44.9% to $2bn

The foreign exchange (FX) market experienced a significant decline in turnover during the week ending 14 August 2026, with total turnover dropping 44.90% to $2,054.89 million. This marked a sharp contrast to the previous week's figure of $3,729.44 million, resulting in a week-on-week loss of $1,674.55 million. The contraction primarily stemmed from a sharp reduction in FX Spot transactions, which accounted for 99.33% of total market activity, falling to 95.58%.

The loss in Spot trading turnover was dramatic, decreasing 46.98% from $3,704.44 million to $1,964.00 million, and the daily average for Spot transactions fell from $740.89 million to $443.22 million.

On the flip side, the FX Derivatives market saw substantial growth, increasing by 263.56% to $90.89 million over the same period. The surge was predominantly driven by the FX Forwards market, which also expanded by 263.56% to $65.89 million. This growth lifted the daily average for derivatives from $5.00 million to $18.18 million and boosted its market share from 0.67% to 4.42%.

While the increase in forward contracts helped institutional clients lock in future exchange rates, it was not enough to offset the steep decline in Spot trading, ultimately resulting in a net decrease in overall market activity.