Trading volume of foreign exchange market will double in 10 years

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Trading volume on the world foreign exchange markets by 2020 will increase by two and a half times – up to 10 trillion dollars a day. It is reported by Bloomberg, referring to the forecast of the Swiss bank UBS.
Over the past three years the volume of transactions on the foreign exchange market increased by 20 percent and reached $ 4 trillion a day. This is more than expenditure budget for the United States. The main pair, through which the transaction remains the euro / dollar, whose share in the structure of trades is 28 percent.

Further growth in trade will happen because of portfolio diversification of central banks, pension funds, hedge funds and insurance companies. These institutions are buying and selling currency at 1.9 trillion dollars a day. Compared with last year, this amount increased by 42 percent.

As noted by UBS, in the next 10 years, investors will become more actively manage their portfolios because the volatility in the foreign exchange market is growing. The bank believes that this process is not stopped by crisis in financial markets, no disruptions in the international trading system, which is clearly shown crisis of 2007-2010

Due to the increasing volume of trades central banks will be much harder to influence exchange rates, which can lead to greater volatility fluctuations.

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