Japanese corporates boost forex hedging

Notionals traded highest since end-2012

Japanese banks stepped up foreign exchange derivatives trading with non-financial customers in the first half of 2018, growing notional volumes by 5% to $829 billion – their highest since the end of 2012. Over the prior half-year period, volumes grew just 2%.

Over-the-counter forex options traded with non-financial firms, such as corporations, increased 21% to $87 billion, forex forwards and swaps by 4% to $479 billion and currency swaps by 1% to $263 billion.

In contrast, notional volumes