The Bangko Sentral ng Pilipinas (BSP) released today the national results of the turnover part of the 2001 Bank for International Settlements (BIS) Triennial Central Bank Survey of Foreign Exchange and Derivatives Market Activity.* The BSP, which joined the survey in 1998 for the first time, is one of 48 central banks participating in the 2001 BIS global triennial survey. The consolidated results of the survey will provide central banks as well as the financial community with a measure of the national and global foreign exchange and over-the-counter (OTC) derivatives trading activity.
The survey, which the BIS conducts every three years, consists of two phases—the turnover part and the amounts outstanding part which were conducted in April and June, respectively, this year. The turnover data give a measure of market activity and can also provide a rough proxy for market liquidity while the amounts outstanding data provide a gauge of market size.
The turnover results for the month of April 2001 showed that the peso and the US dollar were the most traded currency pair. Total transactions involving the peso and the US dollar amounted to about US$12.1 billion (gross of local dealer double-counting). The total is broken down as follows: spot transactions, US$4.8 billion; outright forwards, US$1.0 billion; foreign exchange swaps, US$6.3 billion; and currency swaps, US$.039 billion. Meanwhile, trading of various foreign exchange contracts involving the US dollar and major currencies such as the yen, euro and the pound amounted to the US dollar equivalent of US$ 2.0 billion, US$0.5 billion and US$0.2 billion, respectively.
Compared to the total turnover in April 1998, this year’s transactions between the peso and the dollar were lower by 7.3 percent. A decline was likewise recorded in US dollar transactions versus the yen (14.6 percent) and the pound (93.1 percent). The drop in turnover volume could be traced in part to the decrease in the number of participating banks from 51 in 1998 to 42 in 2001 arising from the consolidation in the banking system. These 42 survey respondents are domestic and foreign commercial banks located in the Philippines.
* The results of the survey on the amounts outstanding will be released later this month.