Financial System

Turnover in FX and OTC derivatives markets in Poland

In 2022, the Bank for International Settlements (BIS) once again coordinated a survey on turnover on foreign exchange and over-the-counter (OTC) derivatives markets. 52 central banks and monetary authorities, including Narodowy Bank Polski, participated in this project. They collected data from over 1,200 financial institutions on the value of transactions concluded in April 2022 on the foreign exchange market (including the spot market, outright forwards, fx swaps, CIRS and currency options) and the OTC interest rate derivatives market (FRA, IRS, OIS and interest rate options). In Poland, twelve domestic banks and branches of credit institutions submitted data for the purpose of this study. The goal of the Triennial Central Bank Survey of Foreign Exchange and OTC Derivatives Market Activity is to obtain comprehensive and internationally comparable statistical information on the liquidity and structure of the above mentioned markets.

The key data on the foreign exchange and OTC interest rate derivatives markets in Poland are presented below:

  • In April 2022, the average daily net turnover on the domestic foreign exchange market amounted to USD 13,019 million (an increase by 47% at current exchange rates, as compared to the value of transactions in April 2019), of which USD 9,618 million were transactions involving the Polish zloty:
    • fx swaps continued to be the most actively traded instrument on the domestic foreign exchange market; average daily net turnover in these instruments in April 2022 amounted to USD 8,551 million (an increase by 65% at current exchange rates, as compared to April 2019), of which USD 6,269 million were transactions involving the Polish zloty,
    • the average daily net turnover on the domestic spot market in April 2022 amounted to USD 3,130 million (an increase by 22% at current exchange rates, as compared to the value of transactions in April 2019), of which USD 2,455 million were transactions involving the Polish zloty,
    • increase in turnover was predominantly due to elevated activity of domestic non-financial counterparties; furthermore, the increased number of concluded transactions may have been supported by easier access of small and medium enterprises, as well as retail clients, to the foreign exchange market, as a result of, among others, domestic banks’ offering of trading platforms and online exchange offices which allowed smaller entities and retail clients to carry out foreign exchange operations at rates similar to those quoted on the wholesale market,
    • Internet trading platforms (so called forex platforms), allowing to speculate using cash-settled forwards, were still popular among retail clients.
  • The average daily net turnover on the domestic OTC interest rate derivatives market in April 2022 amounted to USD 2,332 million (an increase by 10% at current exchange rates, as compared to April 2019), of which USD 2,293 million were transactions in instruments denominated in the Polish zloty (an increase of 87% at current exchange rates, as compared to April 2019):
    • a significant increase, as compared to the previous survey, of the turnover on the domestic market for OTC interest rate derivatives denominated in PLN was predominantly the result of stronger and more diverse market participants’ expectations of changes in NBP interest rates in the short and medium run, as well as the elevated volatility of asset prices in various segments of the financial market which was triggered by Russia’s military aggression against Ukraine,
    • the role of instruments denominated in CZK and HUF on the domestic OTC interest rate derivatives market substantially diminished,
    • central clearing of OTC interest rate derivatives was a common practice in the domestic banking sector – around 94% of gross turnover in those instruments were cleared by a CCP.

The determinants of the above mentioned tendencies as well as detailed information on the structure of those markets coupled with the outline of the methodology have been presented in the document Turnover on the domestic foreign exchange and OTC derivatives markets in April 2022.

The results of the survey on turnover on the global foreign exchange and OTC interest rate derivatives markets have been published by the Bank for International Settlements and are available on its website: https://www.bis.org/statistics/rpfx22.htm. In addition to that the website: http://www.bis.org/statistics/triennialrep/national.htm contains links to other central banks’ press releases which present the results of the survey for their local markets.

Downloads:

See also:

Survey results in previous years:

NBP interest rates

Reference rate 6.75
Lombard rate 7.25
Deposit rate 6.25
Rediscount rate 6.80
Discount rate 6.85

Exchange rates

Table of 2022-12-05
1 EUR4.6898
1 USD4.4415
1 CHF4.7542
1 GBP5.4558
100 JPY3.2842

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Contact

Narodowy Bank Polski
Świętokrzyska 11/21
00-919 Warszawa
Poland

tel.:
+48 22 185 10 00
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