The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms and Conditions.

All material subject to strictly enforced copyright laws. © 2022 Euromoney, a part of the Euromoney Institutional Investor PLC.

FX and Banking: A bad year to have a good year

Bumper results produced by many FX units are likely to prove a sideshow in what will be a year of write-downs and general value destruction.

Although few banks strip out the results, Euromoney believes that most of them have recorded bumper profits form their FX activities in 2008. Coming on top of generally solid performances in 2007, many will now be hoping that repeat performances will be seen in 2009.

If ever there was a bad year to have a good year, it is likely to have been 2008. With most other departments suffering badly, the bumper results produced by many FX units are likely to prove a sideshow in what will be a year of write-downs and general value destruction. The chances are that many FX participants will find they have not been rewarded as they think they should. Although this will obviously prove disappointing, in the longer term it should cement the reputation of FX as a proper asset and a realistic business line.

This year might well prove to have been a watershed in FX for several reasons, some of which are not yet fully apparent. Market participants have long believed that FX is an asset in its own right and while it remains true that the currency aspect is often ancillary to a cross-border securities transaction, the market’s overall liquidity should continue to attract new players.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.


Unlimited access to and

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually


Unlimited access to and, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors


Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree