RBA Notes Broad Decline In Foreign Exchange Transactions

Sponsored Links

Transactions in the foreign exchange markets declined significantly since early 2008, according to a new report from the Reserve Bank of Australia.

The semi-annual Foreign Exchange Turnover report issued by the RBA Thursday examined ForEx markets in Australia, Canada, Japan, Singapore, the United States and Great Britain.

"After growing strongly between late 2006 and early 2008, foreign exchange turnover in these six markets has since declined significantly," the report said.

The decline was tied to two effects of the global financial crisis, the RBA said, the contraction in cross-border investment activity and the fall in global trade.

While Australia's market roughly followed the same trend up to April 2009, the RBA said "more timely monthly data suggest that turnover in the Australian market roughly troughed in early 2009 and has subsequently picked up."

The RBA also announced July foreign exchange transactions totaling A$705 billion in July.

(Market News Provided by RTTNews)