1.2.4 Daily turnover in Forex market

It is believed that the daily turnover in the Forex market was as follows:

• In 1977 - $ 5 billion

• In 1987 - 600 billion dollars

• At the end of 1992 - $ 1 trillion

• In 1997 - $ 1.2 trillion

• In 2000 - $ 1.5 trillion

• In 2005-2006, the volume of daily turnover on the FOREX market fluctuated, according to various estimates, between 2 and 4.5 trillion dollars.

• In 2010 - $ 4 trillion. In this case, predicted further increase in the intraday turnover to $ 10 trillion in 2020.The Bank for International Settlements periodically conducts scale research of the Forex market every three years since 1989. The final report contains information about the turnover of the market, the structure and dynamics. The latest report was released in December 2010. However, no precise data, because OTC market and there is no mandatory registration and publication of trades. Part of this volume provides a margin trading, which is permitted under the terms of contracts for amounts significantly in excess of actual capital transaction participant. Regardless of the nature and purpose of transactions, large daily turnover is a guarantee of high liquidity of the market.

1.2.5 Types of exchange rate

However, actually, this statement only applies to particular type of exchange rate regime, namely the free - floating rate. For today in world practice there are several types of exchange rate regimes, depending on the specifics of each country.

With a certain degree of conditionality type of monetary system can be divided and identified by some characteristics:

1. Type of countries with closed market has the following characteristics:

Tendency to secrecy of the economy and economic information, hard restrictions for investors and export-import operations, mainly the state form of economy, policy form of the determining the exchange rate regime. The exchange rate such country is unpredictable, investors and importers seek to avoid transactions in that currency, the real calculation on trade turnover are made in the currency of third countries. Market of similar exchange is usually very narrow (or non-existent).

Macroeconomic indicators do not directly affect the rate of exchange such currency on the world market.

2) Fixed exchange rate system

Countries with a fixed-rate priority at significant economic potential.

Usually currencies of such countries are firmly fixed in relation to the "authoritarian» currency and suitable for export and import operations and investments. Macroeconomic indicators usually have no or very little effect on the rate of the national currency of such countries.

3. Managed float regime

There is also a very large number of countries with a relatively free, but not stable economy, the exchange rate of such countries it is difficult to predict and may depend on random factors:.

• Political instability

• Unpredictable economic policies of the government

• An international non-competitiveness,

• Raw material orientation of the economy,

• inflationary financing of the budget deficit,

• Insufficient level of foreign exchange reserves,

• Including those from the micro-economic indicators.

Investing in such a currency is usually risky and importers tend to use the currency of third countries in the calculation of the turnover with these countries. Macroeconomic indicators in countries affected by the currency exchange rate, however, may be artificially hold back by the government for political reasons