Foreign Exchange

The US dollar remains king in the world’s biggest market, as the rise of Asia’s share in foreign exchange trading, led by China, is coming at the expense of Europe rather than the US, analysts say. 

Rising oil demand has some countries hoping that commodity prices will rebound. 

Algorithms reading Twitter may have sent the pound tumbling for no good reason. 

Although Liam Fox made headlines for saying British businessmen are too lazy to boost exports, less extensively reported remarks by the UK’s international trade secretary hint at a significant change in policy.

Global Finance takes the world’s central bank governors to school in our annual “report cards” grading their economic stewardship.

Cross-Border Payments | Magic is only for fairy tales, but new technologies promise a magical transformation in cross-border payments. 

Capital Markets | Foreign Exchange
After years of bemoaning the negative effects of the strong dollar on their revenue and earnings, US-based multinationals are singing a different tune.

Intense competition is driving rapid digitization as financial institutions seek an edge over rivals in the nonstop foreign exchange sector.

The People’s Bank of China has introduced bigger movements in its daily fixings of the country’s currency against the dollar. If sustained, this subtle change could signal that the central bank is preparing to allow greater flexibility in foreign exchange trading.

Foreign exchange volatility is a major headache for corporates, but with strategic planning it’s possible to enjoy the ride.

Capital Markets | Foreign Exchange
Locals as well as visitors to Zimbabwe will soon be able to walk into shops and pay for purchases in renminbi.

Our cover story this month focuses on a little-known fact: Global trade growth has slowed in recent years, and intraregional trade, especially in Asia, is becoming more prominent.

The $5 trillion-a-day foreign exchange market is changing rapidly, as electronic execution platforms control the bulk of trading and bank dealers streamline operations in response to growing pressure from regulators to cut trading risks and boost capital. 

Q+A
David Newns, global head of State Street’s Currenex, says the diversity and liquidity provided by ECN (electronic communications networks) trading are keenly important to banks.
 

Profiles of the 2016 FX Award Winners by Region and Category

Criteria for choosing the winners included transaction volume, market share, scope of global coverage, customer service, competitive pricing and innovative technologies. Global Finance also considered input from a panel of experts and feedback from industry analysts, corporate executives and technology specialists.

Foreign Exchange | Capital Markets
The renminbi’s entry into the International Monetary Fund’s basket of currencies, the Special Drawing Rights (SDR), will require China to have a more flexible exchange rate.

Q+A
Richard de Roos, global head of foreign exchange, Standard Bank, says a deep understanding of client needs comes over time, with continuous engagement and constant feedback.

Q+A
Marc Zaffran, head of FX sales at Societe Generale Corporate and Investment Banking, says clients are looking more closely at how and why they hedge.

Q+A
Michael Curran, head of foreign exchange, BNY Mellon Markets Group, sees blockchain technology as the FX market’s key innovation.