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

May 30, 2023
WATANABE Kota, HARI Kyosuke, SAWADA Natsu, BESSHO Hidemi
Financial Markets Department

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.


The Bank of Japan Review Series is published by the Bank to explain recent economic and financial topics for a wide range of readers. This report, 2023-E-4, is a translation of the Japanese original, 2023-J-3, published in February 2023. Views expressed are those of the authors and do not necessarily reflect those of the Bank. If you have any comments or questions, please contact, Financial Markets Department (E-mail: