Manfred Wiebogen
Manfred Wiebogen

Currencies in movement – ever heard about the ‘Khaleeji’ project?

Manfred Wiebogen looks at how the economic impact of globalisation together with the current financial crisis may demand some reorganisation in the world currency structure.

There is no doubt about it. The US-$ holds by far the biggest market share as a traded currency according to the reported figures published in:  ‘foreign exchange market turnover by currency pair’ by BIS. Just to interpret this tableau, one can say that 88% of the overall traded FX volume involves the USD whilst just 37% involves the EUR as the second largest currency traded.  Source BIS In some aspect this underlines the distribution of the most widely-held reserve currencies in the world of which the US-$ counts for some 64% and the EUR for some 26.5% (in 2008). Even when the US-$ market share is gradually shrinking over the years it still stays the dominant factor in our market environment and is not about to become replaced. What I am driving at? The globalisation and its economic impacts, the current financial crisis and also some political developments require some reorganisation in the world currency structure. There are growing tendencies to reduce a portion of payments made...continued

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