Abstract
High volumes of transactions and volatility in foreign exchange rate markets during 1992 and 1993 have raised concerns about the robustness of the global financial system. The volume of foreign currency transactions has increased dramatically and presently exceeds one trillion US dollars in settlements each day. In a recent survey European bankers forecasted increasingly volatile (foreign) exchange rates, implying that risks in these markets will increase towards year 2000 [1]. Beyond trading required to help the functioning of an orderly market and to stabilize exchange rates, central bankers are increasingly participating in foreign currency trading with the purpose of generating revenues. This further contributes to higher volume and volatility.
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© 1994 Springer Science+Business Media Dordrecht
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Mokkelbost, P.B. (1994). Default Risk Exposure in Foreign Exchange Rate Derivatives. In: Fair, D.E., Raymond, R. (eds) The Competitiveness of Financial Institutions and Centres in Europe. Financial and Monetary Policy Studies, vol 28. Springer, Dordrecht. https://doi.org/10.1007/978-94-015-8350-3_27
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DOI: https://doi.org/10.1007/978-94-015-8350-3_27
Publisher Name: Springer, Dordrecht
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