Problem
Incapacity of government reserves in relation to currency transactions
Incidence:
Studies in 1992 show that the volume of currency trading has grown by over 50% over a three year period to an estimated one trillion dollars per day. This amount is equivalent to the total foreign exchange reserves held by the world's central banks. Banks are therefore handicapped by their ability to have a significant effect on the currency market and to defend their currencies.
Broader Problems:
Inadequate domestic monetary reservesInadequacies of the international monetary system Aggravates:
Exchange rate volatilityDisruption of financial marketsInstability of the world economyLack of confidence in the international monetary system Subject(s):
Commerce → CurrencyGovernment → Government
Resources → Resources
Related UN Sustainable Development Goals:
Problem Type:
E: Emanations of other problems Date of last update
04.10.2020 – 22:48 CEST