Infographic: Are We Moving Closer to a Global Currency?
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Over $4 trillion in world currencies is traded each day in forex markets, 16.5 times more than the trading volume of all global stock markets. Yet, only 2 percent of forex transactions correspond to actual economic activity. In other words, 98 percent of all forex trades are purely speculative.
Over $4 trillion in world currencies is traded each day in forex markets, 16.5 times more than the trading volume of all global stock markets. Yet, only 2 percent of forex transactions correspond to actual economic activity. In other words, 98 percent of all forex trades are purely speculative.
Forex is one of the largest speculative markets in the world and have in the past triggered currency crises in countries such as Mexico, Thailand, South Korea and Russia. With so many central banks adopting monetary easing policies at once, there has been growing concern of a currency war because of differences in how countries manage national deficits. “I think the biggest danger is actually, potentially, a currency war,” said billionaire investor George Soros.
Take a look at some of the issues surrounding money in the global economy and why there might be a possible transition to a global currency.
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Related Story: Will 2013 Mark The Start Of A New, More Dangerous Currency War?: Mohamed El-Erian
Created by MoneyChoice.org
