Survey of Foreign Exchange and Derivatives Market Activity in Lithuania,April 2007

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 2007, the triennial survey covered foreign exchange and OTC derivatives turnover reported by approximately 1,280 market participants in 54 countries. Seven commercial banks (reporting dealers) reported the data for the triennial survey in Lithuania. They represented about 97 per cent of the activity in Lithuania’s foreign exchange and derivatives market.

In April 2007, Lithuania’s foreign exchange turnover totaled US$ 17.3 billion, and the average daily turnover amounted to $ 963 million. Spot transactions, swaps and outright forwards made up respectively 69, 30, and 1 per cent of foreign exchange turnover (see Table 1).

The market participants in Lithuania concluded foreign exchange contracts mainly with reporting dealers (44%). The share of trading with other financial institutions accounted for 30%, with non-financial institutions - 26% of the total turnover.

The euro was the most traded currency in Lithuania’s market for FX contracts, followed by the US dollar and the litas (see Table 2). The share of turnover of the contracts concluded against the national currency accounted for 61% of the total FX turnover.

In Lithuania, the OTC derivatives market is not active as yet. In April 2007, the turnover in derivatives amounted to $ 944 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/press/p070925.htm.

Table 1. Lithuania’s foreign exchange and derivatives market turnover by instrument, counterparty and maturity¹ (Nominal or notional principal amounts in April; 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; in millions of US dollars)

Table 3. Lithuania’s OTC derivatives turnover by instrument and counterparty (Nominal or notional principal amounts in April; in millions of US dollars)