Heering Ligthart President ACIThe Financial Markets AssociationMerchant / Institutional Banking Fortis Bank.
Heering Ligthart President ACIThe Financial Markets AssociationMerchant / Institutional Banking Fortis Bank.

Regulation of FX Markets: Dream or Reality?

Heering Ligthart examines recent currency crises around the world and assesses what role cyber trading has played in them.

First Published: e-Forex Magazine 12 / Foreword / October, 2003

Ever since currencies were stopped being linked to an official gold price – the gold standard was banned in August 1973 – there have been discussions about how to minimize or control the volatility on the foreign exchange markets. In many ways and with different results, countries have – or a group of countries - been trying to control their currency rate. For example, fixed rate systems (i.e Currency Board system), crawling peg systems like in many Eastern European countries, two tier currency rate systems (Belgium banned their two tier system in 1992) , the ERM and EMS system and within that system the famous “snake” which defined a smaller band between the Belgium franc and the Dutch guilder compared with the other currencies.That is one side of the coin. The other is that some countries have manipulated their currency in order to improve their export position or should we say to hide their incompetence in keeping their finances in order. In that sense the introduction of...continued

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