The Bank for International Settlements (BIS) produced its triennial detailed review of foreign exchange (FX) markets on 5 September 2013. What we learn from this is that the FX market is vast, growing and still dominated by dollar trading in London. It’s vast The global FX market turns over $5.3 trillion a day (which is… Continue Reading
Tag Archives: foreign exchange
How to evade capital controls
The latest data on China’s foreign exchange reserves, showing a rise of $130 billion to $3.4 trillion, suggest that capital is flowing into China again after an apparent outflow ahead of the change of government in late 2012. There is also growing evidence of Chinese residents smuggling capital into China by disguising it as exports. The… Continue Reading
China’s balance of payments: current and capital accounts now pulling in different directions
Every country’s economic relations with the rest of the world are summarised in the balance of payments. This is divided into the current account, which records the flows of trade and income, and the capital account, which records the flows of financial assets and liabilities. Usually countries have a deficit on one and a surplus… Continue Reading