Global Currency Turnover Reaches Rp 40,000 Trillion Daily, Largest Centre Not in US
Global currency trading activity across borders involves transactions worth trillions of dollars daily, with the majority concentrated in several key financial centres. Cross-border foreign exchange activity occurs continuously throughout the 24-hour trading day and involves global banks, multinational corporations, hedge funds and institutional investors.
Data from the Bank for International Settlements (BIS) indicates that cross-border foreign exchange transactions reach approximately US$2.6 trillion per day, equivalent to around Rp 44.044 trillion.
The United Kingdom is the largest centre for cross-border foreign exchange trading, with transaction values around US$957 billion per day, representing approximately 40% of the global total. This dominance reflects London’s strategic position between Asian and American trading sessions, combined with the presence of numerous international banks and mature financial market infrastructure.
The United States ranks second with transactions around US$653 billion per day, primarily conducted in New York. The city serves as one of the world’s major financial centres and plays a substantial role in US dollar trading, the most dominant currency in the global financial system.
Asia also plays a significant role in the global foreign exchange market. Singapore records transactions around US$336 billion per day, making it the largest foreign exchange trading centre in South-East Asia and one of the world’s major financial hubs.
Transformation in Cross-Border Payments
Amid substantial cross-border transaction activity, financial technology is beginning to transform how international payments are conducted. Traditional payment systems typically involve numerous intermediaries, relatively high transfer costs and lengthy transaction settlement periods.
Digital financial innovations now enable cross-border money transfers to be completed more rapidly and efficiently. Through digital financial platforms, both individuals and businesses can conduct global transactions with simpler processes compared to conventional international payment systems.