Prime Highlights

• Singapore’s foreign exchange (FX) market records a record turnover of US$1.27 trillion a day, 12% higher than in October 2024.
• FX volumes doubled over 2021 to be Asia’s top currency hub, far bigger than Hong Kong.

Key Fact

• Heritage FX trades (spot, forwards, swaps) rose to US$1.14 trillion a day, 8% from late 2024.
• OTC currency derivatives rose 50% to US$133 billion a day.

Key Background

Singapore’s foreign exchange market is still healthy, consolidating the city-state’s position as the hub of currency trading in the region. The Singapore Foreign Exchange Market Committee, in its recent bi-annual survey, stated that April 2025 average daily FX turnover was US$1.27 trillion, an increase of 12% compared to October 2024. The spectacular surge also marked a record high doubling of volumes since April 2021, which is an indication of the city-state’s growing attractiveness on the foreign currency market.

Legacy FX products like forwards, spot, and swaps captured the majority of the US$1.14 trillion daily business, increasing by 8% from six months ago. Off-exchange currency derivatives, on the other hand, grew by an impressive 50% to US$133 billion daily. The across-the-board increase is a testament to the nation’s robust infrastructure foundation and favorable location in directing major foreign currency flows globally.

Several drivers have fueled this increased growth. The global trade and capital flow rebound during the pandemic has powered more aggressive demand for currency trading and hedging products. Geopolitical tensions, including uncertainty driven by tariffs and regionalized conflicts, have driven businesses and asset managers to hedge more aggressively. The decline in the US dollar during global rebalancing of trade has further driven diversification into other major currencies.

Advocates of Singapore reference its liquidity support base, regulatory solidity, and strong investor confidence underpinning its long-term success. Analysts refer to structural elements, such as regional prosperity growth and the expansion of Southeast Asia’s financial markets, as key drivers. Singapore’s FX volume today is almost double Hong Kong’s, further entrenching its regional leadership and ascending global stature.

Read More : Singapore Central Bank Holds Monetary Policy Steady Amid Easing Trade Tensions