'India's Forex Market Average Daily Turnover Doubled From USD 32 Billion In 2020 To USD 60 Billion In 2024': RBI Governor Sanjay Malhotra

New Delhi: India's foreign exchange (forex) market has seen strong growth in recent years, with average daily turnover nearly doubling from USD 32 billion in 2020 to USD 60 billion in 2024.

This significant development was highlighted by Reserve Bank of India (RBI) Governor Sanjay Malhotra during his address at the 24th FIMMDA-PDAI Annual Conference in Bali on Friday.

Governor Malhotra noted that India's financial markets have become more dynamic and resilient over the past few years.

He said "Over the past few years, we have witnessed significant developments that have transformed our markets into a dynamic and resilient force.....Almost doubling of average daily turnover in the forex market from 32 billion USD in 2020 to 60 billion USD in 2024".

He pointed out that the forex market is not the only one to show growth. The overnight money market has also expanded, with average daily volumes rising by 80 per cent--from about Rs 3 lakh crore in 2020 to over Rs 5.4 lakh crore in 2024.

Similarly, the government securities (g-secs) market has seen a 40 per cent increase in average daily volumes, reaching Rs 66,000 crore during the same period.

Speaking about the larger role of financial markets, Malhotra said they are vital for India's economic progress. "If India is to navigate the shifting tides and fulfil its aspirations, financial markets will have to play a crucial role," he said.

Financial markets are not only places for raising capital and trading assets, but also key enablers of economic growth, he added.

He also shared that despite global challenges, India's government securities market remained stable throughout the year. Gross market borrowings by the central and state governments totalled Rs 24.7 lakh crore in FY 2024-25 and were completed smoothly.

Governor said "The government securities market has however, remained rock-steady throughout the year".

In conclusion, Governor Malhotra said India has made strong progress in developing its financial markets.

"Motivated to fulfil the nation's evolving needs and aspirations and guided by learnings from successive crises, our markets have matured and advanced. Our market infrastructure is state-of-the-art. The levels of transparency are at par with the best in the world," he said.

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