The magnitude of the FX ... ... ... ... ... ... ... ... ... ... ... ... ... ...
"...Mr. John Exter (the father-in-law of the senior author of this commentary), retired economist and central banker, warned 34 years ago when Nixon closed the gold window to foreigners that the world had embarked down a treacherous road when it chose an IOU nothing paper money system with floating exchange rates. He envisioned an era of severe dollar debasement and ultimate repudiation of the dollar as a store of value, which would then eventually undermine confidence in the global paper money system. The dollar's problems have taken center stage, and suspicion has awakened.
In a $40 trillion world economy, the global irredeemable paper money system has mushroomed into a foreign exchange market (FX) where the turnover of currencies exceeds $1.5 trillion daily, according to the Bank of International Settlements. In other words, almost $550 trillion in foreign exchange transactions occur annually, compared with $7.5 trillion of annual turnover on the NYSE.
The foreign exchange market, which dwarfs all the worlds' financial markets, is an inter-bank or inter-dealer market based on a network of hundreds of major banks across the globe. Major foreign exchange centers are London (50% of the market), New York, Tokyo, Zurich, Frankfort, Hong Kong, Singapore, Paris, and Sydney. Trades above $1 million constitute the institutional side of the market, while those below $1 million represent the retail side.
FX players are typically governments and central banks, commercial and investment banks, hedge funds, businesses, consumers, investors, and speculators. Of all FX transactions, 85% involve the seven major currencies: US dollar, Japanese yen, Swiss franc, British pound, euro, Canadian dollar, and Australian dollar...."
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