Developments in and Characteristics of Japan's FX Market: An Analysis Based on the 2022 BIS Triennial Central Bank Survey

Kota Watanabe, Kyosuke Hari, Natsu Sawada and Hidemi Bessho
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Kota Watanabe: Bank of Japan
Kyosuke Hari: Bank of Japan
Natsu Sawada: Bank of Japan
Hidemi Bessho: Bank of Japan

No 23-E-4, Bank of Japan Review Series from Bank of Japan

Abstract: In 2022, foreign exchange (FX) markets saw a rapid and significant depreciation of the Japanese yen (JPY) against the U.S. dollar (USD). Based on the results of the Triennial Central Bank Survey conducted by the Bank for International Settlements (BIS) in April 2022, this paper explores FX turnover in Japan -- which reached a historical high since the start of the survey -- by currency, type of instrument, and counterparty. It then examines the impact of the increase in FX turnover on the USD/JPY exchange rate. In addition, it explains the background of the long-term downtrend in the share of Japan in the global FX market through a comparison with global survey results, mainly by analyzing turnover by currency.

Keywords: Foreign exchange; Turnover; Market structure (search for similar items in EconPapers)
JEL-codes: F31 G12 G15 (search for similar items in EconPapers)
Date: 2023-05-30
New Economics Papers: this item is included in nep-ifn and nep-mon
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Persistent link: https://EconPapers.repec.org/RePEc:boj:bojrev:rev23e04

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