Global currency transactions
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Despite the financial crash in recent years, the Bank of International Settlements confirmed that the UK retained its top spot for leading on global currency transactions.
London-based banks handled 37% of the world’s foreign exchange deals in a three year period to April 2010, followed by the United States with 18% and Japan with 6%.
When discussing forex flows, and hot-money / FDI flows, an interesting stat to come out of their report is that currency transactions grew by 20% in the last three years, with an average daily turnover of $4 trillion.
The BBC’s business editor, Robert Peston, points out here that the sum is equivalent to the entire output of the global economy being traded around once a fortnight on currency markets.
This implies that if a Tobin Tax was imposed, it would generate quite the revenue for governments!!
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