3 ms·
Which currency the trades are settled in is effectively meaningless as long as it's hard currency. If they end up with a surplus of Euros and a deficit of Doll
by treis 7y ago
Which currency the trades are settled in is effectively meaningless as long as it's hard currency. If they end up with a surplus of Euros and a deficit of Dollars they can easily exchange Euros for Dollars. If they end up with fewer dollars it's mostly by choice.
- conjecTech 7y agoWe're talking about hundreds of billions of dollars here. How confident are you that you could 'easily' do that without major undesired effects?
- treis 7y agoThis cite says the average daily volume of EUR/USD trades is half a trillion a day: https://www.currenciesfx.com/index.php/eur-usd https://www.currenciesfx.com/index.php/eur-usd So hundreds of billions of dollars a year is small relative to the volumes being traded.
- conjecTech 7y agoVery little of that is true demand. That corresponds to 10x American GDP annualized.