As most people know, the general trend in the dollar’s role as an international currency has been slowly downward since 1976.
The latest on the dollar’s international currency status
Jeffrey Frankel, 6 December 2013
Monetary policy in Latin America: Where are we going?
Christian Daude, 10 December 2012
Inflation targeting has served countries in Latin America well . They have achieved macroeconomic stability by reducing inflation and the pass-through of external shocks such as oil price and exchange rate fluctuations (cf. Mishkin and Schmidt-Hebbel 2007).
The foreign exchange market: Not as liquid as you may think
Loriano Mancini, Angelo Ranaldo, Jan Wrampelmeyer, 3 September 2012
With an estimated average daily trading volume of $4 trillion, the foreign exchange (Forex) market is by far the world’s largest market (Bank for International Settlements 2010).
Getting beyond carry trade: What makes a safe-haven currency?
Maurizio Michael Habib, Livio Stracca, 30 January 2011
We all “know” that some currencies are safe havens in crisis times – take the Japanese yen or the Swiss franc. But do we know why? And does the dollar belong to this list?
Carry on speculating on the volatility of foreign exchange
Pasquale Della Corte, Lucio Sarno, Ilias Tsiakas, 26 January 2011
The standard “carry trade” is a popular currency speculation strategy that invests in high-interest currencies by borrowing in low-interest currencies. This strategy works well if, for example, spot exchange rates are unpredictable.
The $4 trillion question: What explains FX growth since the 2007 survey?
Dagfinn Rime, Michael R King, 23 December 2010
In April this year, 53 central banks and monetary authorities participated in the eighth Triennial Central Bank Survey of Foreign Exchange and Derivatives Market Activity (BIS 2010). The 2010 Triennial shows a 20% increase in global foreign exchange (FX) market activity over the past three years, bringing average daily turnover to $4 trillion (Table 1 and Figure 1, left panel).
Lessons for the foreign exchange market from the global financial crisis
Michael Melvin, Mark P. Taylor, 6 November 2009
The timing of the subprime crisis, which became the global crisis, is well known; see, for example, New York Fed (2009). The impact on the foreign exchange markets has been much less discussed.
Can we understand the recent moves of the euro-dollar exchange rate?
Anton Brender, Emile Gagna, Florence Pisani, 21 July 2009
Trying to forecast foreign exchange rates is challenging. Understanding their past behaviour is not much easier. In this respect, the bumpy road followed by the dollar against the euro during the last two years seems to be no exception. Nonetheless, a look at Figure 1 gives some interesting clues.
Why foreign exchange transactions did not freeze up during the global financial crisis: The role of the CLS Bank
Richard M. Levich, 10 July 2009
Administration officials have once again put the need for new trading systems for complex derivatives on the front burner. Officials are right to be concerned, as many new financial products represent contracts between two counterparties – banks, brokerage houses, insurance companies, and hedge funds, among others – without the benefit of a centralised exchange or clearinghouse.
Policymakers must prevent financial institutions from becoming too connected to fail
Jorge A. Chan-Lau, Marco A. Espinosa-Vega, Kay Giesecke, Juan Solé, 2 May 2009
How should governments handle large and complex financial institutions that are “too big to fail” and “too connected to fail”?
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