The global Foreign exchange market is currently experiencing a healthy growth. Foreign exchange (FX), or forex, refers to a system that facilitates the transaction of currencies from different countries. It is performed through credit instruments, such as bills of foreign currency, bank drafts and telephonic transfers. The fund transfer functions through an electronic network of banks, financial institutions, brokers and individual traders. Forex also finds extensive applications for transferring funds to support the exchange of various goods and services between nations.
Growing urbanization and digitalization in both the emerging and developed economies are among the key factors driving the growth of the market. The key features of FX, such as minimal trading costs, 24x7 trading opportunities, high transactional transparency and liquidity, have favored its widespread acceptance across the globe. Furthermore, the availability of electronic platforms and the provision of improved security mechanisms for trading are also providing a boost to the market growth. Various internet-based platforms are available to the users for conveniently exchanging currencies between countries while ensuring the delivery of goods and services in a secure and centralized setting. Additionally, various technological advancements, such as the availability of outright forward and currency option, are creating a positive outlook for the market growth. Outright forward enables the trader to lock the current exchange rate, which further protects the investor, exporter or importer from future rate fluctuations. On the other hand, the currency option refers to a contractual document that establishes an obligation to purchase or trade currency at a specific rate. Looking forward, IMARC Group expects the market to register a CAGR of around 6% during 2020-2025.
Breakup by Counterparty:
Other Financial Institutions
Breakup by Instruments:
Outright Forward and FX Swaps
Breakup by Region:
Middle East and Africa
The report has also analysed the competitive landscape of the market with some of the key players being Barclays, BNP Paribas, Citibank, Deutsche Bank, Goldman Sachs, HSBC Holdings plc, JPMorgan Chase & Co., The Royal Bank of Scotland, UBS AG, Standard Chartered PLC, State Street Corporation, XTX Markets Limited, etc.
Key questions answered in this report:
How has the global foreign exchange market performed so far and how will it perform in the coming years?
What are the key regional markets in the global foreign exchange industry?
What is the breakup of the market based on the counterparty?
What is the breakup of the market based on the instruments?
What are the various stages in the value chain of the industry?
What are the key driving factors and challenges in the industry?
What is the structure of the global foreign exchange market and who are the key players?
What is the degree of competition in the industry?