USD
USD is the U.S. dollar; it is a currency and global funding unit, while DXY is only one index that tracks the dollar against a specific basket.
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FX Currency Turnover Shares Add to 200%, Not 100%
Every foreign-exchange transaction contains two currencies, so currency-level turnover shares count both sides of each trade.
What it is
BIS currency shares in global FX turnover are measured by whether a currency appears on one side of a transaction. Because every FX trade has two currency legs, the shares across individual currencies sum to 200 percent rather than 100 percent.
Why it matters
Without this convention, a large currency share can be misread as a conventional market-share percentage and comparisons across currencies can look mathematically inconsistent.
Example
A USD/EUR transaction contributes to both the dollar share and the euro share of currency turnover.
Common mistake
Adding currency turnover shares and expecting them to total 100 percent like mutually exclusive portfolio weights.
What to watch
- currency-level turnover
- currency-pair turnover
- two currency legs
- BIS net-net basis
- measurement convention
Key takeaway
Check the denominator and counting convention before interpreting an FX market-share statistic.
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Sources
Bank for International Settlements
Educational and informational purposes only. Not investment advice.