Foreign Exchange Market to grow by USD 582 Billion (2025-2029), driven by

NEW YORK, Feb. 2, 2025 /PRNewswire/ — Report with market evolution powered by AI – The global foreign exchange market size is estimated to grow by USD 582 billion from 2025-2029, according to Technavio. The market is estimated to grow at a CAGR of 10.6% during the forecast period. Growing urbanization and digitalization is driving market growth, with a trend towards 24×7 trading opportunities for foreign exchange. However, uncertainty of future exchange rates poses a challenge. Key market players include Bank of America Corp., Barclays PLC, BNP Paribas SA, Citigroup Inc., Commonwealth Bank of Australia, DBS Bank Ltd, Deutsche Bank AG, HSBC Holdings Plc, JPMorgan Chase and Co., London Stock Exchange Group plc, NatWest Group plc, Societe Generale SA, Standard Chartered PLC, State Street Corp., The Bank of Nova Scotia, The Goldman Sachs Group Inc., UBS Group AG, and XTX Markets Ltd..

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Market Driver

The Foreign Exchange Market, also known as Forex, is a global market where currencies are bought and sold. Financial institutions and non-financial customers, including individuals, retailers, corporate institutes, and multinational corporations, participate in this market for various reasons. Currency swaps, international trade, interest rate differentials, monetary interventions, speculation, investment flows, and economic indicators are some of the trends influencing Forex. Political developments, risk appetite, inflationary pressures, and geopolitical risks also impact the market. Retail forex trading, international transactions, and currency exchange services are accessible to individuals and small businesses through modern technology and trading platforms. Central banks, monetary policies, regulations, and inflation are key factors affecting Forex rates. Major currency pairs like EUR/USD, GBP/USD, and USD/JPY have high trading volume, with interbank networks and electronic platforms ensuring efficiency in 24-hour operations. Corporates, hedge funds, wealth managers, and foreign exchange services offer advisory services, trading programs, and remittance services to meet diverse needs. Globalization of businesses, GDP growth, investor confidence, liquidity, and economic events influence Forex market dynamics. Financial crises and strategic corporate activities also impact the market, with hedging strategies providing risk management solutions. Personal finance, global commerce, international travel, and online shopping are some areas where Forex plays a crucial role. 

The foreign exchange market operates continuously, providing traders with the opportunity to buy and sell currencies around the clock. This is due to the fact that trades are facilitated through a network of computers and various…