September 28, 2004

The Bank for International Settlement (BIS), Basel, Switzerland, has been conducting a global survey on foreign exchange and derivatives market activity since 1998. The survey is conducted every three years with the help of the central bank of the participating countries. The objective of the survey is to obtain comprehensive and internationally consistent information on the size and structure of the foreign exchange and derivatives market. The survey aims at increasing market transparency, helping the central banks, other authorities and market participants to monitor patterns of activity in the global financial system.

India participates in the survey through the Reserve Bank of India. The first such survey was conducted in 1998 and the next survey was conducted in 2001. Third such survey has been conducted now with 52 central banks and monetary authorities collecting data on turnover of foreign exchange transactions (spot, outright forward and foreign exchange swaps) as well as over-the-counter currency and interest rate derivatives.

The information on these activities relates to the month of April 2004 and covers about 79 per cent of the market activity.

The findings of the global and India surveys are posted on the RBI website www.rbi.org.in and BIS website www.bis.org/publ/rpfx04.htm

Alpana Killawala

Chief General Manager

Press Release: 2004-2005/348