Include the continuing consolidation in the banking industry, as well as efficiency gains derived

From the use of electronic brokers in the spot interbank market. For its part, the share of trading

between banks and non-fmancial customers edged up to 14%.

Between 2001 and 2004, there were no substantial changes in the currency composition of turnover.

The dollar was on one side of 89% of all transactions, followed by the euro (37%), the yen (20%) and the

pound sterling (17%). Dollar/euro continued to be by far the most traded currency pair in April 2004,

with 28% of global turnover, followed by dollar/yen with 17% and dollar/sterling with 14%. The share

of trading in local currencies in emerging markets increased slightly, from 4.5% to 5.2%.

The data for 2004 reveal in most countries a further decline in the number of reporting banks

accounting for 75% of the market. This is consistent with the broad trend towards consolidation in

The banking industry and the consequent reduction in the number of trading desks. While this has had

A dampening effect on global turnover, it has been counterbalanced by other factors mentioned above.

The geographical distribution of foreign exchange trading did not change noticeably in the

Period. The United Kingdom continued to be the most active trading centre, accounting

for 31% of total turnover, followed by the United States (19%), Japan (8%), Singapore (5%), Germany

(5%), Hong Kong SAR (4%), Australia (3%) and Switzerland (3%). Let us examine spot