An international institution owned by 63 central banks that serves as a bank for central banks, facilitates monetary cooperation, and produces influential research on global financial markets including the definitive Triennial Survey of forex turnover.
What the BIS Does
The Bank for International Settlements, headquartered in Basel, Switzerland, is often called "the central bank of central banks." Founded in 1930, it facilitates cooperation among central banks, conducts economic research, and provides banking services to central banks and international organizations. The BIS also hosts several important standard-setting bodies, including the Basel Committee on Banking Supervision and the Financial Stability Board (FSB).
BIS and Forex Markets
The BIS publishes the Triennial Central Bank Survey, the most authoritative source of data on global foreign exchange market turnover. The 2022 survey found that daily forex turnover reached $7.5 trillion, making it by far the largest financial market. This data helps traders understand market structure, liquidity, and which currencies are most actively traded.
BIS research papers on topics like Carry Trade dynamics, exchange rate determination, and global liquidity conditions are widely read by institutional forex market participants.
Basel Standards
The BIS-hosted Basel Committee sets capital and liquidity requirements for banks globally. These regulations affect how much capital banks must hold against forex trading activities, influencing market liquidity and trading costs.
Related Terms
International Monetary Fund (IMF)
An international organization of 190 member countries that promotes global monetary cooperation, financial stability, and economic growth. The IMF provides loans to countries in financial distress and monitors global exchange rate policies.
World Bank
An international financial institution providing loans and grants to developing countries for capital projects. While less directly connected to forex than the IMF, World Bank programs and reports influence economic development and currency stability.
Financial Stability Board (FSB)
An international body that monitors and makes recommendations about the global financial system. The FSB coordinates financial regulation across jurisdictions and assesses vulnerabilities that could affect forex market stability.
Central Bank
A national or supranational institution responsible for managing a country's monetary policy, controlling the money supply, setting interest rates, and maintaining financial stability.
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