The foreign exchange market is unique by its liquidity, size
(the largest market in the world) and heterogeneity of market
participants. According to the latest data from the Bank for
International Settlements (BIS), the average daily turnover in
foreign exchange market in the month of April, 2013, was $5.3
trillion. It increased from $3.98 trillion in 2010 by 33%. Such
turnover is created by a large variety of market participants:
central banks, importers and exporters of goods and services,
currency risk hedgers, foreign asset purchasers and sellers,
dealers and brokers, speculators and investors, people who buy
currency for traveling abroad. Increasing size of the market
and variety of participants creates a demand for exchange rate
forecasts.