Data from the Bank for International Settlements (BIS) reveals that global foreign exchange market trading volumes reached historic heights due to severe currency volatility triggered by U.S. trade tariffs.

Preliminary survey results indicate that over-the-counter (OTC) daily trading volumes hit $9.6 trillion in April, marking a 28% increase from the same period in 2022. Simultaneously, daily trading volumes for OTC interest rate derivatives soared 59% to $7.9 trillion.

This month-long market snapshot coincided with the most turbulent foreign exchange trading period of the year. Trump's "Liberation Day" tariffs announced on April 2nd sent global assets into turmoil, with the U.S. dollar weakening as its safe-haven status took a hit. JPMorgan's currency volatility index reached its highest level in two years during that month.

The BIS report noted that this survey was "conducted during a period of heightened volatility in foreign exchange markets, stemming from trade policy announcements by major economies at the beginning of the month." The report also highlighted that the previous survey round in April 2022 occurred amid market disruption caused by the outbreak of the Russia-Ukraine conflict.

The BIS has conducted surveys every three years since 1986, serving as the most comprehensive source of data on global currency market size and structure. BIS stated that over 1,100 financial institutions participated in the 2025 survey.

Since Trump first announced his tariff plans, market volatility has subsided, with JPMorgan's volatility index now at its lowest level since mid-2024. Some traders believe that advances in electronic trading are suppressing volatility.

Notably, the $9.6 trillion figure excludes exchange-traded volumes, which BIS estimates at approximately $200 billion daily in April 2025. Additionally, some OTC transactions not captured in BIS reporting are also excluded, suggesting the actual total could be higher.

**Dollar Dominance**

The report shows the U.S. dollar continues to dominate global foreign exchange markets, accounting for 89.2% of trading, up from 88.4% in 2022. The euro's share declined from 30.6% to 28.9%, while the Japanese yen remained essentially flat at 16.8%.

The British pound's trading volume decline was particularly notable, with its market share falling from 12.9% to 10.2%, dropping below the average of the past three surveys.

This narrowed the gap between the pound and the Chinese yuan. The yuan's share rose from 7% to 8.5%, while the Swiss franc also increased from 5.2% to 6.4%.

For the first time since 2016, institutional investors' trading share increased, rising from 11% in 2022 to 13%. Hedge funds and proprietary trading firms saw their share grow from 7% to 8%.

In contrast, non-financial customers' trading share continued to decline, falling from 6% in 2022 to 5%.

**"Key" Role**

Foreign exchange swaps remain the most commonly used instrument, accounting for 42% of total turnover, though down from 51% in 2022.

BIS stated that "despite falling to its lowest level since the 2010 survey, FX swaps continue to play a key role in the market."

Meanwhile, spot and forward trading volumes increased, primarily driven by financial institutions' trades to hedge against dollar weakness.

Daily spot trading of $3 trillion accounted for 31% of global turnover, up from 28% in 2022. Forward transactions, used to lock in future exchange rates, increased their share from 15% in 2022 to 19%.

BIS researchers noted that "dollar depreciation appears to have prompted many institutional investors and asset managers holding dollar assets to limit further FX losses in their portfolios by selling dollar forwards."