Offshore Markets Drive Trading of Emerging Market Currencies

15 Pages Posted: 17 Dec 2019

See all articles by Nikhil Patel

Nikhil Patel

Bank for International Settlements (BIS)

Fan Dora Xia

Bank for International Settlements (BIS) - Monetary and Economic Department

Date Written: December 8, 2019

Abstract

FX markets for the currencies of emerging market economies grew more rapidly than those for major currencies between 2016 and 2019, rising from 19% to almost 25% of global turnover. At the same time, these currencies attracted a wider range of participants and saw a rapid increase in offshore trading activity. Offshore markets tended to drive onshore markets during times of global market stress.

JEL Classification: F31, G12, G23

Suggested Citation

Patel, Nikhil and Xia, Fan Dora, Offshore Markets Drive Trading of Emerging Market Currencies (December 8, 2019). BIS Quarterly Review, December 2019, Available at SSRN: https://ssrn.com/abstract=3502881

Nikhil Patel (Contact Author)

Bank for International Settlements (BIS) ( email )

Centralbahnplatz 2
Basel, Basel-Stadt 4002
Switzerland

Fan Dora Xia

Bank for International Settlements (BIS) - Monetary and Economic Department ( email )

Centralbahnplatz 2
CH-4002 Basel
Switzerland

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