McGraw-Hill/Irwin ? 2003 The McGraw-Hill Companies,Inc.,All Rights Reserved.
9-1
Foreign Exchange Trade Growth
0
500
1 0 0 0
1 5 0 0
1986 1995 1998 2001
$ billions
McGraw-Hill/Irwin ? 2003 The McGraw-Hill Companies,Inc.,All Rights Reserved.
9-2
Geographical Distribution of Global Foreign
Exchange Activity
(percentage share of total average daily turnover)
0
5
10
15
20
25
30
35
L o n d o n N e w Y o r k T o k y o S i n g a p o r e
1 9 8 9
1 9 9 2
1 9 9 5
1 9 9 8
Figure 9.1
McGraw-Hill/Irwin ? 2003 The McGraw-Hill Companies,Inc.,All Rights Reserved.
9-3
The Hierarchy of International Financial
Centers
Note,Size of dots (squares) indicates cities’ relative importance
S?o Paulo
Rio de Janiero
Mexico
City
San
Francisco New
York
Toronto
Bombay
Melbourne
Sydney
Tokyo
Hong Kong
Singapore
Paris Zurich
Frankfurt
Amsterdam
ViennaMadrid
Hamburg
Dusseldorf
Rome
Brussels
Chicago
London
Basel
McGraw-Hill/Irwin ? 2003 The McGraw-Hill Companies,Inc.,All Rights Reserved.
9-4
Currency Use on One Side of a FX Transaction
U, S, Dol la r 82 3 87 90
G e r, M a r k 40 37 30 NA
Ye n 23 24 21 NA
B r i t, P oun d 14 10 11 1 3,2
S w i s s F r a n c 9 7 7 6,1
Ca n, Dol la r 3 3 4 4,5
A u s t, Dol la r 2 3 3 4,2
ECU / E M S 12 15 17 NA
Eu r o NA NA NA NA
Currency April ‘92 April ‘95 April ‘98 April ‘01
Percentage share of average daily turnover
Table 9.2
The Big Mac Index
Purchasing Power Parity,April 2001
United States $2.54 - - - - - - - - -
Argentina Peso 2.50 0.98 1.00 -2
Brazil Real 3.60 1.42 2.19 -35
China RMB 9.90 3.90 8.28 - 53
Euro 2.57 0.99 0.88 - 11
France FFr 18.5 7.28 7.44 - 2
Hong Kong HK $10.70 4.21 7.80 - 46
Japan ￥ 294 116 124 - 6
Russia Roule 35.00 13.8 28.9 - 52
Switzerland SwFr 6.30 2.48 1.73 44
Price in
Local
Currency
Implied
PPP of the
Dollar
Actual
Exchange
Rate
17/04/01
Local Currency
% Over(+)
or Under(-)
Valuation
Against Dollar
? 2002 by The McGraw-Hill Companies,Inc,All rights reserved.
Big Mac Prices
Table 9.3
McGraw-Hill/Irwin ? 2003 The McGraw-Hill Companies,Inc.,All Rights Reserved.
9-6
Macroeconomic Data for Bolivia,April 1984 -
October 1985
1984
April 270 21.1 3,576
May 330 31.1 3,512
June 440 32.3 3,342
July 599 34.0 3,570
August 718 39.1 7,038
September 889 53.7 13,685
October 1,194 85.5 15,205
November 1,495 112.4 18,469
September 3,296 180.9 24,515
1985
January 4,630 305.3 73,016
February 6,455 863.3 141,101
March 9,089 1,078.6 128,137
April 12,885 1,205.7 167,428
May 21,309 1,635.7 272,375
June 27,778 2,919.1 481,756
July 47,341 4,854.6 885,476
August 74,306 8,081.0 1,182,300
September 103,272 12,647.6 1,087,440
October 132,550 12,411.8 1,120,210
Money Supply
(billions of pesos)
Price Level
Relative to 1982
(average=1)
Exchange Rate
(pesos/dollar)
Table 9.4