[F10] Foreign exchange turnover against all currencies

F10 FOREIGN EXCHANGE TURNOVER AGAINST ALL CURRENCIES

‘Turnover’ refers to all foreign exchange transactions in Australia, and is measured in terms of the nominal or notional amount of the contracts. The data are compiled from a survey of financial institutions authorised to deal in foreign exchange in Australia - 'local reporting dealers'. From March 1998, figures reflect all deals struck in Australia, irrespective of where deals may be booked. From March 2007, the data are based on information supplied by dealers at the end of the calendar month and averaged by the number of working days in the month. Previously, information was supplied by dealers on the last Wednesday of the month. From 2013, the data are collected on a quarterly basis, rather than monthly. From April 2018, the data are collected on a semiannual basis, rather than quarterly. Data are now daily averages of foreign exchange turnover for the months of April and October.

For transactions with other ‘local reporting dealers’, the transactions of only one party are recorded. From March 2007, dealers’ related party transactions, or trade between offices and affiliated firms on an ‘arm’s length basis’, are included in either ‘local reporting dealers’, ‘overseas reporting dealers’, 'local other financial institutions' or 'overseas other financial institutions'. Prior to this, such deals were classified only under ‘local reporting dealers’ and 'local other financial institutions'.

Other financial institutions' includes, for example: non-reporting banks, institutional investors, hedge funds & proprietary trading firms, official sector financial institutions. Prior to March 2007 'Other Financials' were included in either 'local reporting dealers' or 'overseas reporting dealers'.

An ‘Outright spot’ transaction is one for receipt or delivery within two business days.

An ‘Outright forward’ transaction is one for receipt or delivery in more than two business days.

‘FX swaps’ are transactions in which parties agree to exchange two currencies on a specific date and to reverse the exchange at a later date. Only the ‘short leg’ of the transaction – the initial exchange – is recorded.

‘OTC options’ turnover reflects options contracts that give the right to buy or sell one currency in exchange for another at a specified price up to a specified future date.

'Currency swaps' are contracts that commit two counterparties to exchange streams of interest payments in different currencies for an agreed period of time and to exchange principal amounts in different currencies at a pre-agreed exchange rate at both initiation and maturity. Only the exchange of principal - the initial exchange - is recorded.

All series are subject to minor breaks owing to the introduction of the new survey format in March 2007, which included a change in survey coverage and the introduction of data on currency swaps. All series are subject to minor breaks in April 2016. Due to changes in the methodology used for compiling spot turnover data by one or more reporting institutions in April 2021, data prior to this point are not directly comparable.

Historical turnover data can be revised owing to the resubmission of data by survey participants.