Final answer:
The total amount of global foreign currency exchange transactions daily is $5.3 trillion, which establishes the foreign exchange market as the largest in the world economy.
Step-by-step explanation:
The total amount of global foreign currency exchange transactions daily is a staggering $5.3 trillion, based on a 2019 survey by the Bank of International Settlements.
This immense volume of trade makes the foreign exchange market the largest in the world economy, dwarfing other economic activities such as international tourism and foreign direct investment, which are comparatively smaller in scale. The majority of these transactions are driven by portfolio investment and the activities of interlocking foreign exchange dealers.