Decentralised, over-the-counter market, also known as the 'interbank'
market
Main participants: Central Banks, commercial and investment banks,
hedge funds, corporations & private speculators The free-floating
currency system began in the early 1970's and was officially ratified
in 1978 Online trading began in the mid to late 1990'sLargest
financial market in the world
$3.2 trillion average daily turnover, equivalent to:
More than 10 times the average daily turnover of global equity
markets1
More than 35 times the average daily turnover of the NYSE2
Nearly $500 a day for every man, woman, and child on earth3
An annual turnover more than 10 times world GDP4
The spot market accounts for just under one-third of daily turnover
1. About $280 billion - World Federation of Exchanges aggregate 2006
2. About $87 billion - World Federation of Exchanges 2006
3. Based on world population of 6.6 billion - US Census Bureau
4. About $48 trillion - World Bank 2006.
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