Average daily trading volumes hit S$1.5T, making Singapore the third-largest global FX hub and the dominant center in Asia.

Record Daily Turnover Breaches S$1.5 Trillion

Singapore's foreign exchange market hit a record average daily turnover of over S$1.5 trillion in 2024, according to the Monetary Authority of Singapore, reaffirming its status as the leading FX hub in Asia and the third largest globally. MAS Managing Director Chia Der Jiun stated that FX average daily traded volumes surpassed S$1.5 trillion in 2024 during the MAS Annual Report media conference for the 2024/2025 period. This marks a significant milestone, surpassing the previous recorded levels and underscoring Singapore's deepening liquidity.

The milestone reflects sustained growth in the city-state's financial ecosystem. Cross-border transaction intensity has been a clear demand driver: Singapore's total merchandise trade reached S$1.3 trillion in 2024, with overall services trade hitting S$1,021.4 billion. The scale of international financial flows requiring hedging and settlement has provided natural support for FX market expansion.

Global FX Ranking and Market Share Ascendancy

Singapore is the third largest FX centre globally after London and New York, and the largest in Asia Pacific, according to MAS. The BIS triennial survey for April 2025 recorded average daily trading volumes reaching US$1.485 trillion (approximately S$2.0 trillion at prevailing exchange rates), a 60% increase from April 2022. This growth rate more than doubled the global average during the same period.

Singapore's share of global FX trading rose to 11.8% in April 2025, up from 9.5% in April 2022, according to MAS data. The April 2025 survey period captured heightened market volatility amid tariff developments, with over 1,100 banks across more than 50 jurisdictions participating. Despite widespread speculation about de-dollarisation, the US dollar remained dominant, used in 89.2% of all FX trades globally, up from 88.4% three years earlier.

The survey data aligns with the semi-annual study by the Singapore Foreign Exchange Market Committee (SFXMC), which reported daily trading volumes of derivative and non-derivative forex transactions at US$1.273 trillion in April 2025, reflecting a 14.2% year-over-year increase in traditional forex turnover and 17.3% growth in the overall FX market. Non-derivatives accounted for approximately 90% of Singapore's daily turnover, with derivatives such as options and currency swaps representing US$133.3 billion or 10.5% of the market.

Currency Pair Concentration and Liquidity Depth

The SFXMC semi-annual surveys reveal clear concentration in major currency pairs. In the October 2024 survey, EUR/USD led with an average daily volume of US$239.8 billion, followed by USD/CAD at US$157.4 billion and USD/JPY at US$132.36 billion. By April 2025, the USD/JPY pair had overtaken other pairs in monthly turnover, recording US$5.7 trillion for the month, with 61.3% of this total coming from forex swaps.

Daily Turnover (USD bn) (USD bn)Source: Orionmano Industries

Singapore's unique role as a regional intermediation hub is evident in the currency composition of its market. More Japanese yen and Australian dollars are traded in Singapore than in Japan or Australia, indicating deep regional intermediation and the city-state's function as the primary liquidity pool for Asian time-zone trading. This concentration reflects the presence of all top five global banks housing their regional FX sales and trading teams in Singapore, providing a deep and liquid market for both G10 currencies and Asian emerging market currencies.

Drivers of Growth: Infrastructure and Asia Time-Zone Advantage

Singapore's FX growth is structurally supported by strategic investment in e-trading infrastructure and its natural position as the liquidity hub for the Asian trading session. MAS actively supports the development of the e-trading ecosystem under the Financial Services Industry Transformation Map (ITM) 2025, which positions Singapore as the global FX price discovery and liquidity centre in the Asian time zone. MAS supports first movers in primary inter-dealer platforms, multi-dealer platforms, and liquidity providers to set up matching and pricing or trading engines in Singapore.

The government's commitment to this sector is part of a broader financial services growth strategy. The sector's average growth rate for 2021-2024 was 4.7%, keeping Singapore on track to meet the ITM 2025 target of 4% to 5% per annum over 2021-2025. The insurance industry also expanded, with total assets increasing by 3.6% in 2024 over 2023 to S$456.4 billion, while assets under management grew 12.2% year-on-year to exceed S$6 trillion for the first time.

The April 2025 BIS survey period, which captured heightened market volatility due to tariff developments, provided a stress test of Singapore's market infrastructure. Volumes surged over 60%, more than twice the global growth rate, demonstrating the market's capacity to absorb increased trading activity during periods of uncertainty. This resilience reinforces Singapore's competitive position against other Asian FX hubs, including Hong Kong and Tokyo.

Outlook

With continued strategic investment in e-trading infrastructure and its position as the natural liquidity hub for Asian time-zone trading, Singapore is expected to retain and potentially expand its lead as Asia's largest FX centre. However, global trade tensions and competition from Hong Kong and Tokyo will test its resilience. The deepening of liquidity in regional currency pairs and the ongoing expansion of the e-trading ecosystem will be critical factors in maintaining Singapore's competitive advantage as the FX market continues to grow in both volume and complexity.