Where are Asian currencies heading?
By Herbert Poenisch
February 2014 UTTER ECONOMICS
Asian currencies, which were set to appreciate in the medium term, have reversed. We examine this phenomenon and predict what may be awaiting Asian currencies.Structure of forex marketsHuge global foreign exchange (forex) markets have a daily turnover of US$5.3tril, which is roughly 23 times the world GDP. The functioning of this market has its own dynamics that can drive the exchange rates of Asian currencies away from their fundamentals. This article will look at the structure of forex markets, based...
Herbert Poenisch
is a retired senior economist at the Bank for International Settlements.
