Lect09-International Financial Markets-VineyChptr15

The approx 2 the other 98 are capital movements and

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Unformatted text preview: • 200 times NYSE volume. • Approx. 2% represents trade-related transactions. The Approx. 2% The other 98% are capital movements and strategic positions 98% taken by banks. taken • The Australian dollar (AUD or A$) is one of the The more actively traded currencies in the world. more – Average daily turnover in the Australian Forex Market typically Average daily > $A100 b, with ≈ ½ against the $A. against – Australian exports + imports for an entire year amount to only Australian around $A300 b ! around – Approximately ⅔ of the trading volume is between foreign 8 exchange dealers and banks overseas. • The price paid to exchange one currency for The another is called the ‘exchange rate’. ‘exchange – For example, the exchange rate between the Australian For dollar (AUD or A$ ) and the United States dollar (USD or US$) may be quoted as A$1 = US$0.67, meaning we can exchange one Australian dollar to get 0.67 of a USA dollar. (For easy reference, when a ccy is quot...
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