Statistical news focuses on the latest figures and trends in Danmarks Nationalbank’s statistics. Statistical news is targeted at people who want quick insight into current financial data.
Trading in Danish Kroner has increased – especially in Denmark
Globally, Danish kroner are traded for kr. 457 billion per day, which is an increase of over 20 per cent in three years. The increase is mainly driven by growth in krone trading in Denmark, which has risen by approximately 70 per cent. Turmoil in international financial markets has contributed to generally increased activity in global currency markets. In Denmark, a total of kr. 680 billion is traded daily in foreign exchange, making the Danish FX market the 13th largest in the world. This is shown by the latest survey of the currency and derivatives market, which the Bank for International Settlements (BIS) conducts every three years in cooperation with several central banks, including Danmarks Nationalbank.
Chart 1: Illustration of foreign exchange markets
Note:
The size of the areas does not reflect the size of the respective currency markets. Daily average turnover in Danish kroner for April 2025. The values in brackets indicate the change in percentage points compared to April 2022.
Source:
BIS and Danmarks Nationalbank.
New data on trading in Kroner
In a Danish context, the market for buying and selling kroner against foreign currency, the krone FX market is central, especially regarding Denmark’s fixed exchange rate policy against the euro. This is the market where the krone exchange rate is formed. Therefore, the krone FX market is the focus here.
First, the global krone FX market is examined, which can be divided into the Danish krone FX market and the offshore market for Danish kroner, see chart 1. The Danish krone FX market is the part of the global krone FX market where banks located in Denmark participate, while the offshore market for kroner is the market for kroner outside Denmark without the participation of banks located in Denmark. In addition to trades involving kroner, there is significant trading in Denmark with other currencies. For example, trading in euros and dollars against other currencies plays a major role in Denmark. Finally, the total Danish FX market is considered.
To gain knowledge about the FX market, Danmarks Nationalbank collects turnover data for FX trades from banks located in Denmark. Every three years, Danmarks Nationalbank provides data on FX trading in Denmark for an international statistic. These data, together with data from other central banks, are used in a global statistic for the FX market in April, coordinated by the Bank for International Settlements (BIS).
Significant growth in the global FX market for kroner
The global krone FX market includes all buying and selling of foreign currency against Danish kroner, both in Denmark and abroad. The krone FX market is thus not geographically or physically limited to Denmark.
Trade policy contributes to increased turnover in FX markets
Total global turnover in kroner averaged kr. 457 billion per day in April 2025, corresponding to a 21 per cent increase since 2022, see chart 1. This development follows the general global trend, where total turnover across all FX markets increased by 27 per cent to USD 9.5 trillion per day on average.
According to both BIS1 and Danish market participants, market activity in April was greatly influenced by announcements regarding US tariffs at the beginning of April. These announcements led to increased uncertainty, a decline in the dollar exchange rate, and increased volatility in financial markets. This resulted in a greater need to hedge currency exposures and restructure securities portfolios, as well as incentives to take speculative currency positions.
Spot and forward transactions make up a larger share of the FX market than before
The share of spot and forward transactions in the global krone FX market increased from 30 per cent in April 2022 to 38 per cent in April 2025. A similar trend was also visible globally, which, according to BIS2, is partly driven by institutional investors and asset managers increasing currency hedging of dollar assets by selling dollars forward.
FX swaps remain the most traded type of FX contract both globally and in the Danish krone FX market. These contracts are most often traded between financial institutions and primarily have short maturities. FX swaps are used for liquidity management as well as financing and simultaneous currency hedging of assets in foreign currency.
Chart 2
The global foreign exchange market for kroner
Note:
Average daily turnover in Danish kroner for April of the years in question. The figures have been adjusted for local and global double counting.
Source:
BIS and Danmarks Nationalbank.
Significant growth in krone trading in Denmark
The Danish krone FX market is geographically defined such that at least one party to the trade is a bank located in Denmark.
Denmark maintains a fixed exchange rate policy against the euro area, and it is in the Danish krone FX market that Danmarks Nationalbank intervenes by buying and selling currency to stabilise the krone exchange rate against the euro. The Danish krone FX market is thus the reference for the market in kroner outside Denmark. An efficient foreign exchange market supports the cross-border trade in goods, services and financial assets and is thus crucial to the economy, especially for small open economies like the Danish economy. Therefore, Danmarks Nationalbank supports good market practice in the FX market and compliance with the Foreign Exchange Global Code and encourages all market participants to do the same.
Turnover in the Danish krone FX market was kr. 163 billion per day, see chart 3, corresponding to an increase of almost 70 per cent compared to 2022. This increase is mainly seen in Danish banks’ trading with foreign banks and institutional investors.
Chart 3
The danish foreign exchange market for kroner
Note:
Average daily turnover in Danish kroner for April of the years in question. The figures have been adjusted for local and global double counting.
Source:
BIS and Danmarks Nationalbank.
Growth in krone turnover has been greater in Denmark than outside Denmark. The share of global turnover in kroner taking place in Denmark has thus increased. However, the majority of global turnover still takes place abroad without the participation of banks located in Denmark, i.e., offshore. The United Kingdom remains the country most often acting as a counterparty in global krone turnover, see chart 4.
Chart 4
Turnover in Danish kroner distributed by country
Note:
Average daily turnover in Danish kroner for April 2025. The figures have been adjusted for local double counting, but unlike Chart 2, they are not adjusted for global double counting. The values in parentheses indicate the change in percentage points compared to 2022. The country breakdown is based on the location of the trading desk.
Source:
BIS and Danmarks Nationalbank.
The Danish FX market remains the largest in the Nordics
The Danish FX market is the market for FX trades in Denmark. This market is geographically defined such that one party to the trade is a bank with a trading desk in Denmark. In addition to the Danish krone FX market, the Danish FX market also includes all FX trades that do not involve Danish kroner, e.g., trades between euros and dollars.
Turnover in the Danish FX market reached an average of DKK 680 billion per day in April 2025. In addition to the previously mentioned growth in the Danish krone FX market, the development since 2022 has also been characterized by increased turnover in trades between euros and dollars. Danish insurance and pension companies, for example, often trade dollars against euros to hedge their dollar-exposed assets3. Conversely, there has been a decline in trades involving Swedish kronor against other currencies.
Chart 5
The danish foreign exchange market
Note:
Average daily turnover in Danish kroner for April of the years in question. The figures have been adjusted for local double counting.
Source:
BIS and Danmarks Nationalbank.
The Danish FX market thus maintains its position as the 13th largest FX market in the world, the largest in the Nordics, and the third largest in the EU after Germany and France, see chart 6. This reflects that major players in the Nordic FX market have chosen to consolidate their interbank FX trading in Copenhagen. Globally, FX trading continues to be concentrated in the major financial centers. About three-quarters of total global FX trading thus went through trading desks in the United Kingdom, USA, Singapore, and Hong Kong.
Chart 6
Largest global foreign exchange markets
Note:
Contribution to global daily turnover in April 2025 from trading desks in different countries (daily average for April 2025, USD billion). Figures adjusted for local double counting.
Source:
BIS and Danmarks Nationalbank.
The Danish krone drops one place on the list of the most traded currencies globally to 21st place, see chart 7. This corresponds to the krone being on one side of 0.7 per cent of global FX trades .
Chart 7
Most traded currencies globally
Note:
Contribution to global daily turnover in April 2025 from different currencies (daily average for April 2025, USD billion). Figures adjusted for local double counting.
Source:
BIS and Danmarks Nationalbank.