The number of forex traders using the marketplace dipped sharply towards the end of last years on concerns over the fate of the eurozone, the Bank for International Settlements said in its quarterly report.

Figures from a range of trading centres show volumes during October fell for the first time since 2009, when markets were recovering from the collapse of US investment bank Lehman Brothers

Foreign exchange volumes continued to suffer throughout last year as volatile markets made investors reluctant to trade.

The decline in trade volume was also attributed to European banks cutting back on lending worldwide. 

The BIS said it derived its estimates from supplementing the data in its foreign-exchange survey, which is undertaken every three years, with information collected from central banks and electronic- trading platforms.

BIS researchers also found that a roughly 50% increase in emerging market bond issuance in the fourth quarter of last year, compared with the previous quarter, helped compensate for shrinking available bank credit as a result of European deleveraging.

That helped support asset prices and kept trade finance flowing even as European banks sold assets and reduced lending, the BIS said.

"An open question is whether other financial institutions will be able to substitute for European banks as the latter continue to deleverage," the bank said.