The City’s dominance of the world’s foreign exchange and interest rate derivative markets grew during the financial crisis, even as London’s banking sector imploded, new figures from the Bank of England show.
The UK accounted for 37pc of the $4 trillion (£2.6 trillion) of global forex activity in April, compared with 35pc in April 2007, when it was already “the single largest centre” in the world. London also retained its pre-eminence in over-the-counter (OTC) interest rate derivatives, increasing its share of the $2.1 trillion global market from 44pc to 46pc over the same three-year period.
The Best MT4 Bridge/Mam Solution for Brokers and Banks
Market Hits $4 Trillion a Day as Investors Chase Profit in Growing Economies
Currency trading volume around the world has hit $4 trillion a day, fueled by investors in the wealthiest nations looking to diversify beyond their home markets in a time of economic turmoil.
The $4 trillion mark represents a 20% gain from $3.3 trillion in 2007, the last time the global foreign-exchange markets were surveyed, according to the Bank for International Settlements. While the survey found continued growth in currency trading, it did reflect a slowdown in the market’s growth from the prior survey, when trading volumes had soared 69% from $1.9 trillion in 2004.
The BIS survey, taken every three years in April, this time provides a snapshot of the currency market during the height of the European debt crisis and at a time when lightning-fast computer models have juiced trading volumes.
The Swiss National Bank appears to have abandoned efforts to halt the appreciation of the `Swissie’ after losing 14bn francs (£9bn) over the first half of the year in a failed effort to stop money flooding into the country, some of it coming from German citizens in Bavaria opening precautionary accounts.
These guys are talking about a different reserve currency that is needed. I don’t think people want or are willing to try a new one, at least I am not that trusting. Please give me a break, another fiat currency.
Why can’t we go back to trading in precious metal coins again. I trust gold and silver will be valued the same all over the world. If people don’t want to carry gold they can have it on deposit and use debit cards for this too, can’t they? I don’t know… Maybe I am too practical and I am making too simple a view of this.
July 28 (Bloomberg) — Lloyd Khaner, general partner at Khaner Capital Management, talks about the outlook for gold prices and investment strategy. Khaner speaks with Jon Erlichman on Bloomberg Television’s “InsideTrack.”
Copyright Bloomberg 2010
How to buy Gold LOW.
We are currently experiencing a gold boom. Investors are flocking toward gold as a safe-haven investment. Expert with 20 years of actual experience of buying gold low teaches investors how to acquire it at or near 50% of spot price. Click Here for a special report on how to buy gold LOW.
Switzerland is fighting a losing battle to stop massive inflows of funds from investors fleeing sovereign risk in the euro area and the rest of the world, raising the risk of a violent spike in Swiss franc if global debt jitters return.
The Swiss National Bank (SNB) said it lost over 14bn francs (£8.8bn) in the first half of the year in a forlorn attempt to hold down the currency against the euro.
“If we have a US slowdown with a fresh financial crisis, everybody is going to want to buy the Swiss franc, along with bottled water, tins hats, and a shotgun,” said David Bloom, currency chief at HSBC. “Now that Japan’s debt is around 200pc of GDP the franc has displaced the yen as the ultimate safe haven.” Click Here for the rest of this story.
Switzerland Under Siege: Free Markets May Yet Save the Swiss Franc
Axel Merk, Portfolio Manager, Merk Mutual Funds
July 20, 2010
Efforts are underway to undermine Switzerland’s rock solid reputation as a safe haven. The alpine nation, famous for its readiness against enemies with citizens storing military assault rifles at their homes, is under attack. The attack, however, comes from one of their own, the guardian of the Swiss franc: the Swiss National Bank (SNB). In any other country, a central bank may have the power to derail the currency; in Switzerland, however, efforts to undermine the franc may be more appropriately characterized by a Don Quixotian battle by a lone warrior, a warrior armed with a license to print money.
Bloomberg — Jim O’Neill, chief global economist at Goldman Sachs Group Inc., talks about China’s relaxation of a two-year peg of the yuan against the dollar. He speaks with Andrea Catherwood on Bloomberg Television’s “The Pulse.”
Bloomberg — Jim O’Neill, chief global economist at Goldman Sachs Group Inc., talks about China’s relaxation of a two-year peg of the yuan against the dollar. He speaks with Andrea Catherwood on Bloomberg Television’s “The Pulse.”
Max Keiser takes offense to Goldman Sachs story
These guys are talking about a different reserve currency that is needed. I don’t think people want or are willing to try a new one, at least I am not that trusting. Please give me a break, another fiat currency.
Why can’t we go back to trading in precious metal coins again. I trust gold and silver will be valued the same all over the world. If people don’t want to carry gold they can have it on deposit and use debit cards for this too, can’t they? I don’t know… Maybe I am too practical and I am making too simple a view of this.
Start Slide Show with PicLens Lite