Booming Asian forex trade has dollar-settlement risk
Wednesday, 18 June 2008
BASEL (Switzerland), June 17 (AFP): Foreign exchange trading in Asian currencies has surged but is being held back by anti-speculation controls and carries time-zone risk through dollar settlement, a research paper at the BIS has found.
The authors of the report suggest that trading and risk management would be improved if settlement via the dollar gave way to use of an Asian currency.
The authors of the report suggest that trading and risk management would be improved if settlement via the dollar gave way to use of an Asian currency.