Foreign exchange turnover in Germany rose only moderately in the last three years, falling well short of the average trend in foreign exchange transactions worldwide. This is one of the findings of the global central bank survey, which the Bank for International Settlements (BIS) carries out every three years and for which the Bundesbank collects the German data.

The survey reveals that, in Germany in April 2013, the average turnover of foreign exchange transactions per trading day on cash and forward markets totalled US$111 billion. Compared with April 2010, the trading volume therefore advanced by 2%. Worldwide developments showed a considerably faster pace of growth. Global daily turnover on the foreign exchange markets in April 2013 averaged US$5.3 trillion, representing an increase of almost 40% against April 2010 (US$4.0 trillion). The trading volume in April 2007 was calculated at US$3.3 trillion.

For the survey, the Bundesbank interviewed the 30 largest banks in Germany, which together account for some 95% of domestic foreign exchange and derivatives trading. Besides turnover volume, data were also calculated on the structure of foreign exchange and derivatives business. The Bundesbank identified distinct shifts for Germany as a financial centre. For example, the volume of currency swaps went up by 23% compared with the previous survey, to US$79 billion, whereas turnover in spot transactions fell by 20% to a level which was even lower than the 2007 figure.

Over-the-counter (OTC) trading in interest rate derivatives also posted increases. In Germany, the volume of OTC transactions executed rose in nominal terms to US$2,128 billion, which is twice the April 2010 level. Worldwide, the OTC trading volume climbed from US$2.1 trillion in April 2010 to US$2.3 trillion. The dynamic development seen in Germany was driven primarily by the rapid growth in forward rate agreements, with turnover four times higher than the April 2010 level.

By contrast, interest rate swaps were transacted in Germany to the tune of US$482 billion, compared with a volume of US$631 billion calculated three years earlier; this decrease bucked the international trend. Turnover in interest rate options in Germany followed the global trend, contracting from US$36 billion to US$25 billion.