New Zealand’s foreign exchange market handled an average of US$7.5 billion per day in April 2004 (relative to US$4.2 and US$7.6 billion per day in April 2001 and 1998 respectively), according to a Reserve Bank survey released today.

These results are part of a triennial survey of 52 central banks and monetary authorities co-ordinated by the Bank for International Settlements (BIS) and reported in US dollars. In New Zealand the survey captured the activity of five major banks participating in the local wholesale financial markets.

Commenting on the survey, Deputy Governor Adrian Orr said “About three quarters of the increase in the value of foreign exchange turnover since 2001 is due to a rise in the New Zealand dollar, with the remainder being due to growth in transaction volume.

The survey also covered interest rate derivative products, such as forward rate agreements and interest rate swaps. Average daily turnover in these products was US$1.8 billion - a threefold increase since 2001.