This article examines recent trends in global and local foreign exchange (FX) markets, using the 2013 Bank for International Settlements Triennial Survey and the Reserve Bank's foreign exchange turnover data. Global FX turnover continued to increase in 2013, with the US dollar remaining the most-traded currency and the United Kingdom the favoured trading hub. The New Zealand dollar was the tenth most traded currency, with the large majority of these transactions occurring outside New Zealand. FX and cross-currency swaps together accounted for more than half of FX turnover in the New Zealand domestic market, reflecting their use by New Zealand's major financial institutions for hedging and liquidity management purposes.