Foreign exchange
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Exchange
exchange rate bandExchange ratesCurrency rateExchange regimeFixed rateFloating exchange rate changes rateLinked marketFutures MarketsForeign forex exchangeRetail futureNon ProductsCurrencyCurrency forwardForex swapCurrency swapForeign swap option See alsoBureau return / exchange (office) Currency market (Forex, FX or forex market) is a decentralized international trade in OTC financial currencies. financial centers around the world that the anchoring role of the exchange between a wide range of different types of buyers and sellers every day except weekends. Foreign exchange market determines the relative value of different currencies [1]. The main objective of the foreign exchange market in favor of international trade and investment, allowing companies to convert one currency into another currency. For example, it allows companies to import goods from the U.S. and pay a pound, although the income from the business in U.S. dollars. It also supports the speculation, and facilitates the transfer of trade, where investors hold low-yielding currency and to (invest in) high-yielding currencies, and (was submitted) may lead to loss of competitiveness of some countries. [2] In a typical transaction in some foreign buying of one currency by paying the amount in another currency. The modern foreign exchange market began to take shape in 1970 when the country gradually moved to a floating exchange rate of the previous rate, which remained fixed as the Bretton Woods institutions. Foreign exchange market is unique in its The second volume of trade, which leads to high liquidity °, geographic dispersion · Continuous Operation: 24 hours a day except on weekends, that is, trade with the 20:15 GMT on Sunday at 2200 GMT on Friday °, a number of factors that affect exchange rates °, low profitability compared with other fixed income markets °, use leverage to increase profits, compared with the size of the account As such, he was appointed to the market closer to the ideal of perfect competition, notwithstanding market manipulation by central banks. [Citation needed] According to the Bank for International Settlements [3], the average daily global foreign exchange markets is estimated at $ 3.98 trillion in April 2007. Distribution of 3,210,000,000,000 dollars is explained as follows: · 1.005 billion dollars in cash transactions ° 362 billion in a straight forward · 1.714 billion U.S. dollars of foreign exchange swaps 129 billion estimated gaps in terms of Contents [hide] 1 market size and liquidity of the market participants or the commercial banks • 2 2.1 2.2 2.3 2.4 Central banks, commercial hedging speculatorso corporate investment fund management 2.5 2, 6 retailers, foreign exchange 2.8 2.7 Non-bank money transfers Company / ° 3 ° 4 trading characteristics of exchange rate determination Ø 4,1 4,2 4,3 Economic Factors The political psychology of the market • 5 Algorithmic trading in exchange Spoto 6 or financial instruments 6.1 6.2 6.3 6.4 6.5 Option to Futureo SWAPO ° 7 ° 8 aversion to risk in speculation FOREX ° 9 See also footnote 11 ° 10 ° Links [Edit] market size and liquidity
Main market exchange rate, 1988-2007, billion USD. Foreign Exchange Market is the largest market and most liquid financial world. Traders are large banks, central banks, speculators, corporations, governments and other financial institutions. The average daily volume of trade and foreign markets around the world related continues to grow. daily turnover reported in more than 3.2 billion dollars in April 2007, the Bank for International Settlements. [3] Since then, the market continues to grow. According to the annual study of Euromoney FX volume increased by another 41% between 2007 and 2008 [4]. Turnover of 3.98 trillion U.S. dollars a day around the world, negotiating on behalf of London to the U.S. dollar of approximately $ 1.36 billion, or 34.1% of the total, making London, far from the global center for trade. In the second and third places, respectively, of trade in New York was 16.6%, and Tokyo is 6.0%. [5] In addition to recipes and "traditional" 2.1 trillion dollars in derivatives has been negotiated. Exchange-traded FX futures contracts were introduced in 1972 on the Chicago Mercantile Exchange and are actively traded relative to most other futures contracts. Many other developed countries to provide for the exchange of products FX (such as futures and options on futures in foreign currencies) on their trade. All these developed countries are already in the capital account fully convertible. Most developing countries do not allow derivatives related to Trade FX with a view to monitoring the capital account widespread. However, some individual developing countries (eg Korea, South Africa, India, [1], [2]) has already successfully tested the exchange of foreign currency, although some controls on capital account. FX volume has grown rapidly in recent years to about 7% of their total foreign exchange market, according to The Wall Street Journal Europe (05.05.2006, p. 20). Top 10 currency traders [6]% of the total, May 2010 Market share rank Title 1 Deutsche Bank 18,06% 2 UBS AG 11,30% 11.08% 3 Barclays Capital 4 Citi 7,69% 5 Royal Bank of Scotland 6.50% 6 JPMorgan 6,35% 7 HSBC 4,55% 8 Credit Suisse 4,44% 9 Goldman Sachs 4,28% 10 Morgan Stanley 2,91% Foreign exchange trading increased by 38% between April 2005 and April 2006 and has more than doubled since 2001. This is largely due to the increasing importance of money as an asset class and an increase in the management of funds, including hedge funds and pension funds. Diverse selection of execution centers made it easier for retail traders to trade the forex market. In 2006 retail trade was more than 2% of the foreign exchange market, with average daily volume of more than $ 50-60 billion (see platform for retail trade) [7]. Since the exchange OTC market where brokers / dealers negotiate directly with each other, there is no central office or house. The largest shopping mall geography of the United Kingdom, particularly London, which, according to IFSL increased its share in total turnover of 31,3% of the traditional April 2004 34.1% in April 2007. Due to the dominance of London market, the price of currency, usually the market price of London. For example, when the IMF expects the value of DSP every day, using market prices in London, at noon that day. The ten most active traders account for 77% of trade volume, according to Euromoney FX survey in 2010. [8] These large international banks continually provide the market with two offers (buy) and ask (sell). Spread is the difference between the price at which the bank or market maker will sell ("ask" or "submission") and the redemption price at which farmers' market (the "Offer") as a whole "wholesale or retail customers. The customer must buy the market maker at a price higher "ask" and will be sold at a low price "offers", giving a "spread", as the cost of completing trade. This difference is minimal for actively traded pairs of currencies, usually 0-3 points. For example, Bid / Ask quote EURUSD may be 1.2200/1.2203 on the wholesale broker. The minimum size of the trade most of the trades, as a rule, 100.000 units of base currency, which is a standard "lot". These differences can not be used for retail bank customers who regularly make a difference to say 1.2100/1.2300 for transfers, or say 1.2000/1.2400 banknotes or traveler's checks. Spot market prices of manufacturers vary, but on the EURUSD, usually no more than 3 points (ie 0.0003). Competition is greatly increased with larger transactions, and point spreads on major pairs to minimize the points from 1-2. [Edit] Market participants Financial markets Officials from the foreign exchange market, organized marketSecurities Bond market Correction incomeCorporate bondGovernment bondMunicipal yield debt bondBond valuationHigh Exchange StockPreferred stockCommon shareStock stockRegistered exchange shareVoting Derivatives market securityCredit SecuritizationHybrid derivativeFutures exchange OTC, non-organized marketForwardsSwapsOptions Spot Exchange rateCurrency Exchange Other Markets marketReinsurance money marketCommodity housing market marketReal Business Practices Rules ParticipantsClearing houseFinancial Finance and financial seriesBanks financePublic BankingCorporate financePersonal V • D • E Unlike the stock market, the forex market is divided into levels of access. At the top of the interbank market, which includes the largest commercial banks and securities dealers. In the interbank market, spreads, which is the difference between bid and ask prices, as razor blades and usually unavailable and not known to players outside the inner circle. The difference between the bid and ask prices widens (0-1 points to 1-2 pips for some currencies, like euros). This is due to the volume. If a trader can guarantee large numbers of transactions for large amounts, they may require a slight difference between the bid-ask spread, which is called the best distribution. Access levels, which represent the foreign exchange market is determined by the size of the "line" (the amount of money with which they trade). Account the high inter-bank market 53% of all transactions. After that, there are generally smaller banks, and then large transnational corporations (which should cover the risk and pay employees in different countries), large hedge funds, and some officials of the retail FX-metal.According to Galati and Melvin, "Pension funds, insurance companies, mutual funds and other institutional investors are playing an increasingly important role in the financial markets in general and the foreign exchange market, in particular, early in 2000." (2004) In addition, he notes: "Hedge funds have grown considerably over the period 2001-2004 in terms of number and overall size" Central banks also participate in the forex market to align currencies to their economic needs. [Edit] Banks The interbank market is for the majority of commercial turnover and large number of speculative trading every day. A large bank may trade billions of dollars a day. This is partly done on behalf of clients, but much more at the head offices of property owned commercial bank. Until recently, foreign exchange brokers did large amounts of business, facilitating interbank trading and related anonymous colleagues for a small fee. Today, however, much of this company moved into the electronic system more efficient. Box defendant broker allows traders to listen to the inter-bank transactions in progress and is heard in most trading rooms, but turnover is noticeably smaller than a few years ago. [Edit] Businesses An important part of this market comes from the financial assets of companies seeking foreign exchange to pay for goods or services.Commercial companies often trade fairly small amounts compared to those of banks or speculators and their trades often have little short term impact on market rates. Nevertheless, trade flows are an important factor in long-term direction of the exchange rate.Some multinational companies can have an unpredictable impact when very large positions are covered by the impact, which are not known to other participants. [Edit] Central banks National central banks play an important role in the currency markets. Try to control the money supply, inflation and / or interest rates and often have official or unofficial target rates for their currencies. They can use their often substantial foreign exchange reserves to stabilize the market. Milton Friedman argued that the best stabilization strategy of central banks to buy when the exchange rate is too low and sell when the rate is too high, ie, in trade for profit through their information more accurate. However, the effectiveness of central bank "stabilizing speculation" is doubtful because central banks do not go bankrupt if they make large losses like other traders, and there is convincing evidence that they make a commercial profit. Just rumors, or central bank intervention might be enough to stabilize the currency, but aggressive intervention might be used several times a year in countries with a dirty float regime. Central banks do not always achieve their goals. The combined resources of the market can easily overwhelm any central bank [9]. Several scenarios of this type were found in the 1992-1993 collapse of ERM, and more recently in South Asia. [Edit] speculators such as hedge funds About 70% and 90 [citation needed]% of foreign exchange transactions are speculative. In other words, the person or institution that bought or sold the currency has no intention of taking delivery of the currency in the end, they were only speculate on the movement of currency. Hedge funds have acquired a reputation for aggressive currency speculation since 1996. They control billions of dollars in capital and may take billions more, and, therefore, likely to exceed the central bank intervention to support almost any currency if the economic fundamentals in favor of hedge funds. [Citation needed] The Office of Investment Business investment management firms (which tend to manage large accounts on behalf of clients such as pension funds and donations) to use the foreign exchange market to facilitate transactions in foreign securities. For example, an investment manager bearing international portfolio investment to buy and sell several pairs of foreign currencies to pay for purchases of foreign securities. Some investment management firms also have more speculative specialist currency overlay operations, which manages foreign exchange risk customers for a profit and limit risk. Although the number of specialist firms is very low, many of them high-value assets under management (AUM), and thus can generate large trades. [Edit] retail foreign broker Retail traders (individuals) are a growing segment of the market, both in size and importance. Currently, they participate indirectly through brokers or banks. retail brokers, while largely controlled and regulated by CFTC and NFA U.S. in the past were victims of fraud periodic currency. [10] [11] To solve this problem, CFTC and NFA began (in 2009) which imposes stringent requirements, particularly with respect to the net capitalization of demands from its members. Consequently, many smaller brokers, and possibly questionable disappeared. There are two main types of retail FX broker provides the opportunity for exchange of currency speculation, dealers and traders or market makers. Brokers act as an agent of a client in a broader foreign exchange market, looking for the best prices on market orders at retail and on behalf of retail customers. They accuse the commission of or an increase in prices received over the market. Dealer or market maker, however, tend to act as principal in a transaction in relation to retail customers, as well as to set the price they are willing to consider a client has a choice whether or not to trade this award. In assessing the feasibility of trading service FX, the client must consider the consequences of the applicant acting as principal or agent. If the service provider acts as an agent, the client is usually done at the cost of notes in particular the best exchange rate interdealer. If the service provider acts as principal, the commission is not paid, but the price offered may not be the best on the market as a service provider has a different side of the transaction, conflicts of interest can be verified. [Edit] non-bank foreign exchange company Business Exchange offers the exchange of non-bank foreign exchange and international money transfers for individuals and legal entities. They are also known as stockbrokers, but differs in that they offer no speculation, but changes with the payments. It is noteworthy that, as a rule, the physical delivery of the currency bank accounts. Send money home, offers a detailed comparison of services offered by all major non-bank foreign exchange companies. It is estimated that in the United Kingdom, 14% of currency transfers and payments [12], in a business changes. [13], point of sale "of these companies is that they tend to exchange rates or cheaper than the bank charges the customer. These companies differ from Money Transfer / remittance in this generally provides a higher value. [Edit] remittance / transfer companies money transfer company in the business / club effect the transfer of large volumes of low value usually economic migrants to their countries of origin. In 2007, the Aite Group estimated that there were 369 billion dollars in remittances (an increase of 8% compared with the previous year). The four largest markets (India, China, Mexico and the Philippines) receive $ 95 billion. Largest and most experienced provider of Western Union with 345,000 agents around the world, and then UAE Exchange and Financial Services Inc. [citation needed] [Edit] characteristics of the trade Most traded currencies [3] for the exchange recorded a turnover in the foreign exchange market Rank ISO 4217 currency code shares (symbol)% every day (April 2007) 1 U.S. Dollar and U.S. Dollar ($) 86,3% EUR 2 EUR (€) 37,0% 3 JPY Japanese yen (¥) 17,0% 4 GBP sterling (£) 15,0% 5 Swiss francs CHF (Fr) 6,8% 6 AUD Australian Dollar ($) 6,7% 7 of the Canadian dollar (CAD $) 4,2% 8-9 SEK Swedish krona (kg) 2,8% 8-9 HKD Hong Kong dollar ($) 2,8% 10 Norwegian krone NOK (kg) 2,2% NZD NZ $ 11 ($) at 1.9% 12 MXN Mexican Peso ($) at 1.3% Singapore SGD 13 million ($) at 1.2% 14 South Korean won KRW (₩) 1,1% Other 14,5% Total 200% There is no one market or centrally for most foreign exchange transactions, and little cross-border settlement. Due to over-counter (OTC) nature of currency markets, there are a number of interrelated markets, where different currency instruments are traded. This means that no single exchange rate, and a number of different rates (prices), depending on the manufacturer's bank or trading market, and where it is. In practice, the stakes are very close, otherwise it can be used by arbitrageurs instantaneously.Due to the dominance of London market, the price of currency, usually the market price of London. A joint venture of the Chicago Mercantile Exchange and Reuters, called FXMarketSpace opened its doors in 2007 and sucks, but not as a mechanism for compensation from the central market. [Source?] The main shopping center located in London, but New York, Tokyo, Hong Kong and Singapore are all important points. Banks around the world participate. Currency trading happens continuously throughout the day, Asian markets end, the European session begins, and then the North American session, and again the Asian session, excluding weekends. Currency fluctuations are usually caused by the cash flows, as well as expectations of changes in cash flows caused by changes in gross domestic product (GDP), inflation (purchasing power between theory), the interest rate (interest rate parity, the domestic deficit Fisher effect International effect Fisher), or the budget and trade balance, large M & A and other macroeconomic conditions.Major news in, often on scheduled dates, so many people have access to the same news at the same time. However, large banks have an important advantage, but they can see the thread for "their clients. Currencies are traded against each other. Each pair of currencies thus constitutes a single commercial product and is traditionally known XXXYYY or XXX / YYY, where XXX and YYY is the ISO 4217 international code of three letters of exchange. The first currency (XXX) is the base currency are traded on the second currency (YYY), called the currency (or currency). For example, a quotation (euros / dollars) EURUSD 1,5,465 thousand is the price of the euro expressed in U.S. dollars, or 1 euro = 1,5,465 thousand dollars. Historically, the base currency in the creation of a strong currency pair. However, when the euro was created by the European Central Bank ordered that she was always the base currency, in each pair. Factors affecting will affect both XXX and XXXYYY XXXZZZ. This leads to a positive correlation between money and XXXYYY XXXZZZ. On the spot market, according to research BIS, the most traded products: · EURUSD: 27% USDJPY NO: 13% · GBPUSD (also called cable): 12% and the U.S. currency was involved in 86.3% of transactions, and then € (37,0%), yen (17.0%) and sterling (15.0%) (see table). per cent of all individual currencies will make up to 200% because each transaction consists of two currencies. Trading in euros has increased substantially since the inception of the currency in January 1999, and for how long the U.S. dollar foreign exchange market will remain focused is controversial. Until recently, trade in the euro against the non-European currency ZZZ will usually consisted of two phases: EURUSD and USDZZZ. The exception to this rule is the EURJPY, which was established traded currency pair in the interbank spot. As the dollar eroded during 2008, interest in using the euro as base currency for the prices of raw materials (eg oil) and a large portion of foreign reserves by banks has increased dramatically. Transactions in currencies of commodity production in countries such as AUD, NZD, CAD, have also increased. [Edit] determinants of exchange rates See also: exchange rate Theories that should explain the fluctuations of exchange rates under a floating exchange rate (a system of fixed exchange rates are decided by its Government FX): () The rules in the international arena: purchasing power parity, parity of interests, the effect of the Fisher domestic, international Fisher effect. Although to some extent above theories provide a logical explanation for exchange rate fluctuations, but these theories fail because they are based on assumptions about the question [for example, free movement of goods, services and capital], which is rarely used in the real world. (B) the balance of payments model (see course): This model, however, focuses on tradable goods and services, ignoring the increasing role of global capital flows. Provided no explanation for the continuation of the dollar in 1980 and more than 1990 before the current account deficit of the United States. (C) model of the securities market (see rate) currency is seen as an important asset for the construction of investment portfolios.Prices for goods mainly influenced by the willingness of people to keep such supplies, which in turn depends on their expectations about the future value of these assets. Model to determine the asset market exchange rates, that "the exchange rate between two currencies is the price that balances supply and relative demand for assets denominated in these currencies." None of the models developed so far can not explain the rate of FX rate volatility and more. For shorter periods of time (less than a few days), the algorithm can be developed to predict prices. individual traders and professional organizations, large and small have made substantial profits from it. He understood from the above models that many macroeconomic factors affecting exchange rates and prices at the end are the result of dual forces of supply and demand. currency markets in the world can not be regarded as a huge melting pot: in a mixture of large and ever-changing current events, supply and demand factors are constantly changing, and the price of one currency in relation to "other movements, respectively Includes. any other market (and distills) how much of what is happening in the world at any given time, and in foreign currency. Supply and demand for currency, and thus its cost does not depend on one element, but a few. These elements are typically divided into three categories: economic factors, political conditions and market psychology. [Edit] Economic factors These include: (a) economic policy, disseminated by government agencies and central banks, (b) general economic conditions, generally revealed through economic reports, and other economic indicators. °, economic policies, including fiscal policies of the government (the practice of budget funds') and monetary policy (through which the government's central bank influences the supply and "cost" of money, which is reflected in the level of interest rates). · Budget deficit or surplus in the government: the market usually reacts negatively to expanding government deficits, and positively to reduce the budget deficit. Influence is reflected in the value of the currency of the country. · Balance of trade levels and trends: trade flows between countries illustrates the demand for goods and services, which in turn indicates demand for the country's currency to trade. Surpluses and deficits in trade in goods and services reflect the competitiveness of the nation. For example, the trade deficit may have a negative impact on the country's currency. °, inflation and trends: Typically, the currency loses its value if there is a high level of inflation in the country, or if the level of perceived inflation to rise. This is because inflation undermines the purchasing power, thus demand for the currency. However, the coin may sometimes strengthen when inflation rises because of expectations that the central bank will raise interest rates in the short term to combat rising inflation. °, economic growth and health: Reports such as GDP, employment, retail sales, capacity utilization and others, including economic growth rates between countries and health. In general, the economy healthier and more secure country, the better its currency will perform, and the demand for this aura. · Performance of the economy, increasing productivity in the economy is expected to positively impact on the value of its currency. Its effect is more pronounced if the increase in trade industry [3]. [Edit] Political conditions Domestic, regional and international conditions and political events can have a huge impact on the currency markets. All exchange rates are susceptible to political instability and anticipations about the new ruling party. political upheaval and instability can have a negative impact on the economy. For example, destabilization of the coalition government in Pakistan and Thailand could affect the value of their currencies. Similarly, in a country in financial difficulty, the growth of political faction that is perceived as a financial liability may have the opposite effect. In addition, events in one country in one region can stimulate positive / negative interest in a neighboring country and, in the process, its currency. [Edit] market psychology understanding of market psychology and trader influence the currency market in various forms: On the expensive quality: alarming international developments might lead to a "flight to quality", with investors seeking a "safe haven". There will be more demand, so the price is higher for the currency is seen as stronger than the relatively weaker counterparts. U.S. dollar, Swiss franc and gold, traditional safe havens in times of political uncertainty and economic [14]. °, long term trends: Currency markets often move in visible long-term trends. Although the currency is not the season, both physical goods annual growth, economic cycles felt. cycle analysis examines trends in the development of prices in the long run, that may arise from political or economic [15]. · "Buy this, sell the fact": This market truism can apply to the situation of multiple currencies. This tendency for the price of currency taking into account the impact of an action before it occurs, and when the event is expected to pass, react in the opposite direction. It can also be viewed as a market being "oversold" or "overbought". [16] To buy or sell an item can be an example of cognitive bias known as anchoring, when investors pay too much attention to the importance of events outside the currency. • Number of economic: While the economic indicators, certainly reflect economic policy, in some cases, the numbers and come into force as a mascot: the number itself becomes important to market psychology and may have a direct impact on the movement of the market in the short term. "What to watch" can change over time. In recent years, for example, money supply, employment, trade balance and inflation numbers have all turns in the spotlight. • Revision of technical trading: As in other markets, the accumulated price of a currency pair like EUR / USD can form apparent patterns that traders may use touch. Many traders study price charts to identify such models [17]. [Edit] Algorithmic trading in foreign currencies Electronic commerce is growing in the foreign exchange market and algorithmic trading is becoming more frequent. Celent estimated financial advice in 2008 to 25% of all trades by volume will be executed by an algorithm, which is 18% in 2005. [Source?] [Edit] Financial instruments [Edit] Spot Spot transaction is a transaction for delivery two days (except in cases of trade between the U.S. dollar, Canadian dollar, Turkish lira and the Russian ruble, which is deposited on the next working day), unlike futures contracts, which are usually three months. This trade represents a "direct exchange" between two currencies, as soon as possible, involves cash rather than contract, and interest is not included in the deal agreed. [Edit] Next See also: fixed-term contract One way to solve currency risk is involved in a forward transaction.In this case, money is not from hand to hand, until in the future.Buyer and seller agree on the replacement rate of any subsequent date, and the transaction will take place on the same day, regardless of market interest rates, then. Duration of exchange can be one day, a couple of days, months or years. As a rule, the date of the decision by both parties. and the futures contract negotiations and agreements between two parties [Edit] Future Main article: The Future of Money Currency futures are traded forward transactions with standard contract sizes and maturity dates - for example, $ 1000 for next November at an agreed level [4] [5]. Futures contracts are standardized and are usually traded on an exchange created for this purpose. Average duration of the contract is about 3 months.Futures contracts are usually taking into account interest amounts. [Edit] Swap Main article: Currency swaps The most common type of forward currency swap transactions. In exchange, the two parties exchange currencies for a certain period of time and decide to cancel the transaction at a later date. These contracts are not standardized and not traded on exchanges. [Edit] Option Main article: Option Exchange Foreign exchange option (commonly shortened to only version of FX) is a derivative in which the owner has the right but not the obligation, expressed in an exchange of one currency into another currency at a rate agreed in advance at the specified. Currency options market deeper, the largest and most liquid market for options of any kind in the world .. [Edit] Speculation Disputes on the speculators and their effect on currency devaluations and national economies back on a regular basis.Nevertheless, economists, including Milton Friedman argued that speculators ultimately are a stabilizing influence on the market and play an important role in providing a market for hedgers and transferring risk, and those who do not support than those who do.[18] Other economists such as Joseph Stiglitz consider this argument is based more on politics and philosophy of free market economy [19]. large hedge funds and other well capitalized "position traders" are the main professional speculators. Some economists argue that individual operators may act as "noise traders" and greater instability and to better inform stakeholders [20]. currency speculation, is considered highly suspect in many countries [where], while investment in traditional financial instruments like bonds or stocks often is considered a positive contribution to economic growth by providing capital, currency speculation does not;. According to this view, it is simply gambling that often interferes with economic policy. For example, in 1992, currency speculation forced the Central Bank of Sweden to raise interest rates for a few days up to 500% per year, and then in the devaluation of the kroon. [21] Former Malaysian Prime Minister Mahathir Mohamad is one well-known advocate of this view. He blamed the devaluation of the Malaysian ringgit in 1997, George Soros and other speculators. Gregory J. Millman reports on the opposing view, comparing speculators to "vigilantes" who simply help "to respect international agreements and anticipate the effects of basic economic" laws "to win [22]. From this perspective, countries may develop unsustainable financial bubbles or wrong of their national economies, and currency speculators made the inevitable collapse happen sooner.Relatively quick collapse might even be preferable to sustained economic abuse, after the eventual collapse, more. Mahathir Mohamad and other critics of speculation are considered as an attempt to deflect blame yourself for what caused the unsustainable economic conditions. [Edit] aversion to risk on the currency
Figure 1 shows the graph of MSCI World Stocks fell, while the U.S. dollar index has increased.
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