This figure excludes the daily turnover in the exchange traded currency futures market which would add up to another $ 5 to 7 billion a day. The depth of the foreign exchange market can also be gauged from the fact that the bid offer spread in USD INR pair is now around half a paisa.
The average daily foreign exchange turnover has, however, showed a dip since the second half of December 2011. One plausible reason for the decline could be the administrative measures taken by the Reserve Bank of India to moderate the excessive volatile conditions prevalent in the foreign exchange market but I will touch upon this issue a bit later in my address.