Richard Willsher
Richard Willsher

Latin America

Global trade, local politics and regulation are the factors that most influence electronic foreign exchange trading in Latin America, while south of the US border the market is as rich and diverse as the countries that comprise the region.

First Published: e-Forex Magazine 48 / Regional eFX Perspective / July, 2012

In many ways Mexico is the role model. The Mexican peso is now the fourteenth most traded currency, according to the most recent Bank for International Settlements Triennial Central Bank Survey.  Its share of average daily turnover in global foreign exchange markets in April 2010 stood at 1.3%, so while it is far from being a major currency, it does register alongside the Norwegian krone and ahead of the Indian rupee, Russian rouble and Chinese renminbi. Mexico leads the Latin American pack, and is the biggest of the “big five” followed by Brazil, Chile, Colombia and Peru. Mexico leads not only in terms of size of turnover, but as a country that over the last three decades has been through the mill of indebtedness, default and rehabilitation with the most developed nations’ financial community and then full currency liberalisation with membership of the wealthier countries club, the Organisation of Economic Co-operation and Development (OECD). It is a path that other Latin countries...continued

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