{"id":482,"date":"2024-08-11T07:24:59","date_gmt":"2024-08-11T07:24:59","guid":{"rendered":"https:\/\/kensmartips.com\/finance\/?p=482"},"modified":"2024-08-11T07:24:59","modified_gmt":"2024-08-11T07:24:59","slug":"the-economics-of-foreign-exchange","status":"publish","type":"post","link":"https:\/\/kensmartips.com\/finance\/?p=482","title":{"rendered":"The Economics of Foreign Exchange"},"content":{"rendered":"<p><iframe loading=\"lazy\" width=\"480\" height=\"270\" src=\"\/\/www.youtube.com\/embed\/ig_EO805rpA\" frameborder=\"0\" allowfullscreen><\/iframe><\/p>\n<p>This video was made possible by our Patreon community! \u2764\ufe0f<br \/>\nSee new videos early, participate in exclusive Q&amp;As, and more!<br \/>\n\u27a1\ufe0f https:\/\/www.patreon.com\/EconomicsExplained<\/p>\n<p>\u2580\u2580\u2580\u2580\u2580\u2580\u2580\u2580\u2580\u2580\u2580\u2580\u2580\u2580\u2580\u2580\u2580\u2580\u2580\u2580\u2580\u2580\u2580\u2580\u2580<\/p>\n<p>The foreign currency exchange market is one of the most influential markets in the world today, the New York stock exchange, the Nasdaq and the Tokyo stock exchange the three largest securities markets in the world have a daily trading volume of around 300 billion USD combined\u2026 the foreign exchange market has a daily trading volume of around 6.6 trillion dollars per day according to the Bank for International Settlements (which is basically the central bank for central banks). This daily figure is more than the annual GDP of all but two of the largest nations on earth, China and the USA.<\/p>\n<p>Well, in this video I want to explore three things: Why is the foreign exchange market so large and influential? Who actually conducts these trades and how? And while we are at it why is it that the UK pound is so valuable compared to all other currencies?<\/p>\n<p>\u2580\u2580\u2580\u2580\u2580\u2580\u2580\u2580\u2580\u2580\u2580\u2580\u2580\u2580\u2580\u2580\u2580\u2580\u2580\u2580\u2580\u2580\u2580\u2580\u2580<\/p>\n<p>\ud83d\udcda Want to learn more about foreign exchange? We recommend reading &#8220;The Art of Currency Trading: A Professional&#8217;s Guide to the Foreign Exchange Market (Wiley Trading)&#8221;, by Brent Donnelly \ud83d\udc49 https:\/\/amzn.to\/2Ygmpx3 (as an Amazon Associate, we earn from qualifying purchases) <\/p>\n<p>Enjoyed the video? Comment below! \ud83d\udcac<br \/>\n\u2b51 Subscribe to Economics Explained \ud83d\udc49 https:\/\/bit.ly\/sub2ee<br \/>\n\u2b51 Enjoyed? Hit the like button! \ud83d\udc4d<\/p>\n<p>Q&amp;A Streams on EEII (2nd channel) \u2192 https:\/\/www.youtube.com\/channel\/UCOTgNyfQG4vVP5sCXrJaS4g<\/p>\n<p>\u2709\ufe0f Business Enquiries \u2192 hello@economicsexplained.com<\/p>\n<p>Follow EE on social media:<br \/>\nTwitter \ud83d\udc26 \u2192 https:\/\/twitter.com\/EconomicsEx<br \/>\nFacebook \u2192 https:\/\/www.facebook.com\/EconomicsEx<br \/>\nInstagram \u2192 https:\/\/www.instagram.com\/EconomicsEx&#8230;<br \/>\n\u2580\u2580\u2580\u2580\u2580\u2580\u2580\u2580\u2580\u2580\u2580\u2580\u2580\u2580\u2580\u2580\u2580\u2580\u2580\u2580\u2580\u2580\u2580\u2580\u2580<\/p>\n<p>#ForeignExchange #NYSE #Currency<\/p>\n<p>\u2580\u2580\u2580\u2580\u2580\u2580\u2580\u2580\u2580\u2580\u2580\u2580\u2580\u2580\u2580\u2580\u2580\u2580\u2580\u2580\u2580\u2580\u2580\u2580\u2580<\/p>\n<p>Sources &amp; Citations &#8211;<\/p>\n<p>Kurt Schuler and Andrew Rosenberg, The Bretton Woods Transcripts<\/p>\n<p>Dominguez, K. and Frankel, J.A., 1990. Does foreign exchange intervention work?. Peterson Institute Press: All Books.<\/p>\n<p>Rodrik, D., 2006. The social cost of foreign exchange reserves. International Economic Journal<\/p>\n<p>Cavallino, P., 2019. Capital flows and foreign exchange intervention. American Economic Journal: Macroeconomics, 11<\/p>\n<p>Global imbalances and destabilizing speculation (2007), UNCTAD Trade and development report 2007<\/p>\n<p>RC Smith, I Walter, G DeLong \u2013 Global Banking Oxford University Press<\/p>\n<p>Foreign Exchange Control in China: First Edition (Asia Business Law Series Volume 4) Kluwer Law International, 2004 <\/p>\n<p>The $4 trillion question: what explains FX growth since the 2007 survey?, the Bank for International Settlements<\/p>\n<p>Music &#8211; Beethoven &#8211; Moonlight Sonata (Piano Cover)<\/p>\n<p>\u2580\u2580\u2580\u2580\u2580\u2580\u2580\u2580\u2580\u2580\u2580\u2580\u2580\u2580\u2580\u2580\u2580\u2580\u2580\u2580\u2580\u2580\u2580\u2580\u2580<\/p>\n<p>EE Fan Exclusive Offer:<\/p>\n<p>Sign-up for Acorns! \ud83d\udc49 https:\/\/www.acorns.com\/ee (after registration, Acorns will deposit $5 in your account to help you get started with investing!)<\/p>\n<p>\u2580\u2580\u2580\u2580\u2580\u2580\u2580\u2580\u2580\u2580\u2580\u2580\u2580\u2580\u2580\u2580\u2580\u2580\u2580\u2580\u2580\u2580\u2580\u2580\u2580<\/p>\n<p>ECONOMICS EXPLAINED IS MADE POSSIBLE BY OUR PATREON COMMUNITY \ud83d\udc4a\ud83d\ude4f<br \/>\nSupport EE by becoming a Patron today! \ud83d\udc49 https:\/\/www.patreon.com\/EconomicsExplained<\/p>\n<p>The video you\u2019re watching right now would not exist without the monthly support provided by our generous Patrons:<\/p>\n<p>Morgon Goranson, Andy Potanin, Wicked Pilates, Tade\u00e1\u0161 Urs\u00edny, Logan, Angus Clydesdale, Michael G Harding, Hamad AL-Thani, Conrad Reuter, Tom Szuszai, Ryan Katz, Jack Doe, Igor Bazarny, Ronnie Henriksen, Irsal Mashhor, LT Marshall, Zara Armani, Bharath Chandra Sudheer, Dalton Flanagan, Andrew Harrison, Hispanidad, Michael Tan, Michael A. 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