Latest News- Foreign Exchange Market: Reporting dealers is expected to lead the Type segment during 2025-2029

The Foreign Exchange Market is being driven by Growing urbanization and digitalization

The Foreign Exchange Market is expected to grow at a CAGR of 10.6% during 2024 and 2029. During this period, the market is also expected to show a growth of USD 582 billion. The foreign exchange market, also known as the FX market, operates on a continuous basis due to the interconnected nature of its electronic trading platforms. Unlike traditional stock exchanges, which adhere to specific trading hours, the FX market is open 24 hours a day, accommodating transactions in various international time zones. This perpetual availability stems from the decentralized network of computers facilitating trades, enabling professionals and institutions to execute deals around the clock. It is essential to note that when the U.S. Dollar's (USD) closing rate is reported, it signifies the exchange rate at the New York market's closing time. However, the USD, along with other currencies, continues to be traded globally beyond New York's market hours. 

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Which Factors Are Causing a Surge in Market Growth?

The market is segmented based on

• Type
  • Reporting dealers
  • Financial institutions
  • Non-financial customers
• Trade Finance Instruments
  • Currency swaps
  • Outright forward and FX swaps
  • FX options
• Counterparty
  • Reporting Dealers
  • Other Financial Institutions
  • Non-Financial Customers
• Geography
  • North America
    • Canada
    • US
  • Europe
    • Germany
    • UK
  • APAC
    • China
    • India
    • Japan
  • South America
    • Brazil
  • Middle East and Africa

According to Technavio, There are several factors that are causing the market to flourish during the forecast period, which are as follows: 

• Growing urbanization and digitalization
• Foreign exchange increases market liquidity
• Increasing central bank interest rates

However, the market also witnesses some limitations, which are as follows:

• Uncertainty of future exchange rates
• Transaction risks in financial transactions
• Counterparty risks with respect to foreign exchange

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Market Scope in Foreign Exchange Market Research Report

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Research Analysis Overview

The Forex market, also known as the foreign exchange market, is a global platform where Currencies are bought and sold between Financial institutions, corporations, individuals, and retailers. This market facilitates international trade and investment flows by enabling the exchange of one currency for another. Factors influencing Forex rates include interest rate differentials, monetary interventions, speculation, economic indicators, political developments, and trading volume. Participants include banks, corporations, and non-financial customers. Currency swaps are another important aspect, with IoT insurance market and balance of payments also impacting the market. The interbank network plays a crucial role in facilitating these transactions.

Market Research Overview

The global financial services industry encompasses businesses primarily focused on providing a range of financial solutions, including banking, insurance, and capital markets. Notable exclusions include Regional Banks and Diversified Banks. According to Technavio, the market size is determined by the consolidated revenue generated from companies offering securities trading, specifically in bonds and stocks. The market's expansion will be fueled by digital transformation, as financial institutions integrate advanced technologies to enhance operational efficiency and customer experience. Additionally, factors such as interest rate differentials, international trade, monetary interventions, speculation, investment flows, and the balance of payments will continue to influence market growth. Currency swaps serve as essential tools for both financial institutions and non-financial customers, including individuals, retailers, and corporate institutions, in managing foreign exchange risks and facilitating international transactions.. Industries are leveraging the products belonging to the market for customer engagement, transactional notifications, and promotional offers.

Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 844 364 1100
UK: +44 203 893 3200
Email: media@technavio.com
Website: www.technavio.com/