Daily Currency Trading Volume Hits Record $4 Trillion

Just wait for the currency markets meltdown!

Expect another ‘Problem – Reaction – Solution’ scenario created by the elite anytime soon.

Here is some background on the BIS (Bank for International Settlements):

BIS: Currency Collapse May Stimulate Economic Expansion (Bloomberg)

Remember?

President Medvedev Shows Off Sample Coin of New World Currency at G8 (Bloomberg)


Percentage share of the U.S. dollar has continued its (not so) slow decline

us-dollar


FRANKFURT (MarketWatch) — Daily turnover in the world’s foreign-exchange markets has soared to $4 trillion, the Bank for International Settlements said Wednesday.

In its survey, conducted every three years, the Basel, Switzerland-based BIS found that global turnover in April 2010 was up 20% from $3.3 trillion in April 2007.

Spot transactions led the rise, increasing to $1.5 trillion a day in 2010 from $1 trillion in 2007. Other forex instruments saw turnover rise 7%, for an average daily turnover of $2.5 trillion.

Britain retained its title as the top player in the forex market, with British-based banks accounting for 36.7% of daily turnover, up from 34.6% in 2007.

The United States followed with 18%, while Japan accounted for 6%. Rounding out the top players, Switzerland, Singapore and Hong Kong accounted for 5% each, while Australia-based banks accounted for 4%.

The percentage share of the U.S. dollar has continued its slow decline witnessed since the April 2001 survey, while the euro and the Japanese yen gained relative to April 2007.

Among the 10 most actively traded currencies, the Australian and Canadian dollars both increased market share, while the pound sterling and the Swiss franc lost ground. The market share of emerging-market currencies increased, with the biggest gains for the Turkish lira and the Korean won.

The U.S. dollar had a share in 85% of all transactions, continuing a “slow retreat” from its 90% peak in 2001 just after the introduction of the euro, the BIS said.

The euro gained two percentage points since the 2007 survey to account for 39% of all transactions. The Japanese yen also increased its market share by two percentage points to 19%, but remained below its 2001 peak of 23.5%.

The British pound accounted for around 13% of transactions, while the Swiss franc’s share fell to 6.4% from 6.8% in 2007. The Australian dollar’s share rose a percentage point to 7.6%, while the Canadian dollar’s share also rose a percentage point to 5.3%.

The biggest increase was seen by the Turkish lira, which saw its share rise to 0.7% from 0.2%, followed by the Korean won, which rose to 1.5% from 1.2%, the BIS said.

Turnover by currency pair was little changed from three years ago, with euro/U.S. dollar /quotes/comstock/21o!x:seurusd (EURUSD 1.2888, +0.0061, +0.4755%) dominating transactions with a 28% share, while U.S. dollar/Japanese yen /quotes/comstock/21o!x:susdjpy (USDYEN 84.4200, +0.1400, +0.1661%) trade increased slightly to account for 14% of turnover, the survey found.

William L. Watts is a reporter for MarketWatch in London.

By William L. Watts, MarketWatch
Sept. 1, 2010, 3:32 a.m. EDT

Source: MarketWatch

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