The evolution of trading activity in Asian foreign exchange markets
Abstract
We exploit previously unpublished data on foreign exchange turnover to analyse the institutional setting in which the currencies of non-Japan Asia are traded. Volumes grew rapidly between 2004 and 2007 and the diversity of market participants increased. Nevertheless, liquidity is undermined by foreign exchange controls. For Asian currencies other than JPY, HKD and SGD, non-residents account for a relatively small share of activity and FX swap markets are still in their infancy. Offshore non-deliverable markets have developed in response to controls, causing segmentation in trading activity. Furthermore, Herstatt risk remains high in Asian foreign exchange markets.Download Info
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Bibliographic Info
Article provided by Elsevier in its journal Emerging Markets Review.
Volume (Year): 9 (2008)
Issue (Month): 4 (December)
Pages: 231-246
Contact details of provider:
Web page: http://www.elsevier.com/locate/inca/620356
Related research
Keywords: Foreign exchange Trading volume Currency controls Emerging markets;References
References listed on IDEASPlease report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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