Turnovers on the foreign exchange market - survey conducted in the week of 18-22 April 2008
The Czech National Bank surveys the average daily turnovers on the foreign exchange market semi-annually – in April and in October. In the most recent survey conducted in the week of 18-22 April 2008 the daily average turnover increased by 2,838.9 million USD (45.9 %) to USD 9,020.8 million compared to October 2007. Forwards and swaps had the major role in this growth, as their daily turnover rose by USD 2,600.0 million (56.6 %). Spot transactions rose by USD 82.6 million (5.6 %). The option market turnover increased by USD 156.3 million (138.0 %), but the share of options in the total turnover remained small (3.0 %).
Regarding the share of individual currency pairs, USD/CZK has the largest portion of the total turnover (42.4 %) with a growth of USD 1,197.8 million (45.6 %). The share of EUR/CZK is 34.8 % with an increase of USD 1.364.3 million (76.9%) in the most recent surveyed period. USD/CZK traditionally plays the major role on the forwards and swaps market (51.6%), whereas on the spot market its share is only 6.8% compared to the EUR/CZK share of 64.0%.
According to information provided by the reporting banks the activity in the surveyed period was above average. The extraordinary increase in the derivatives turnover is also the result of the credit crisis as the local banks prefer using foreign exchange market to money market for steering their liquidity in the foreign exchange currencies. Also the dollar weakening at the world markets and the koruna firming influenced the result.