Developments in and Characteristics of Japan's FX Market:
An Analysis Based on the 2025 BIS Triennial Central Bank Survey
May 22, 2026
KATAOKA Kenjiro, NAMIKI Mashu, SHIMADA Masabumi, TAKADA Yoshihiro
Financial Markets Department
Abstract
In response to the announcement of U.S. reciprocal tariffs in April 2025, the foreign exchange (FX) market experienced rapid fluctuations. This paper aims to analyze the structural characteristics of transactions in Japan's FX market, based on the results of the Triennial Central Bank Survey conducted by the Bank for International Settlements (BIS) in April 2025. The analysis considers various perspectives such as instrument, currency, and counterparty. Additionally, this paper examines the factors driving FX turnover in Japan, comparing it to other FX markets in Asia.
Notice
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, 2026-E-8, is a translation of the Japanese original, 2026-J-4, published in March 2026. 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: fxsurvey@boj.or.jp).