A study evaluating the links between economies' export reliance and the development of OTC FX markets
The genesis of the Paz Activity Curve (PAC) came about during a Forex Datasource empirical study seeking to answer how two macro factors ꟷa nation’s gross domestic product (GDP) and foreign trade ꟷ impact foreign exchange (FX) trading volume across geographies. If we found an equilibrium level between FX trading activity and these macro factors, we also desired to understand how these equilibria evolved since 1990 when OTC electronic FX was in its infancy and following other modern milestones.
Thanks to the ongoing Bank for International Settlements (BIS) triennial FX surveys, the world has a robust look at FX activity data going back to the 1990s for 53 nations. Our pairing of BIS FX data and World Bank’s macroeconomic data provides the basis to address questions such as:
This report is aimed at senior FX market professionals who oversee FX activity globally or particular geographies for banks, government regulators, and large corporations.
Report insights drawn from the following sources:
Segmentation of global economies: