Survey of Foreign Exchange and Derivatives Market Activity in Lithuania, April 2004

The objective of the survey is to obtain reasonably comprehensive and internationally consistent information on the size and structure of foreign exchange and over-the-counter (OTC) derivatives markets. The purpose of the statistics is to increase market transparency and thereby help central banks, other authorities and market participants to better monitor patterns of activity in the global financial system.

The triennial survey covered the data on turnover in traditional foreign exchange markets - those for spot transactions, outright forwards and foreign exchange swaps - and OTC currency and interest rate derivatives.

In April 2004, the triennial survey covered foreign exchange and OTC derivatives turnover reported by approximately 1,200 market participants in 52 countries. Seven commercial banks (reporting dealers) reported the data for the triennial survey in Lithuania. They represented about 99 per cent of the activity in Lithuania’s foreign exchange and derivatives market.

In April 2004, Lithuania’s foreign exchange turnover totalled US$ 22 billion, and the average daily turnover amounted to $ 1 billion. Spot transactions, outright forwards and swaps made up respectively 89, 2 and 9 per cent of foreign exchange turnover (see Table 1).

In contrast to global FX markets, the market participants in Lithuania mostly concluded foreign exchange contracts with other financial institutions (72%). The share of trading between reporting dealers (local and cross-border) accounted for 22% of the total turnover. The activity between reporting dealers and non-financial institutions made up a comparatively small share (7%).

Same as in global FX markets, the US dollar continued to be far the most traded currency in Lithuania’s market for FX contracts, followed by the euro and the litas (see Table 2). The share of turnover of the contracts concluded against the national currency accounted for 20 per cent of the total FX turnover.

In Lithuania the OTC derivatives market is not active yet. In April 2004, the turnover in derivatives amounted to as little as $ 127 million (see Table 3).

The global results of the Triennial Central Bank Survey of Foreign Exchange and Derivatives Market Activity are available on the BIS website (www.bis.org/publ/rpfx04.htm).

Table 1. Lithuania’s foreign exchange and derivatives market turnover by instrument, counterparty and maturity¹

(Nominal or notional principal amounts in April 2004; in millions of US dollars)

¹

Here and in Tables 2 and 3 adjusted for local double-counting.

Table 2. Lithuania’s foreign exchange and derivatives market turnover by currency pairs

(Nominal or notional principal amounts in April 2004; in millions of US dollars)

Table 3. Lithuania’s OTC derivatives turnover by instrument and counterparty

(Nominal or notional principal amounts in April 2004; in millions of US dollars)