Building Blocks of an Investment Portfolio
A quick summary of the current state of global foreign exchange market is necessary to provide a context within which detailed discussion on China foreign exchange market can be correctly presented. Since the beginning of this century, the global FX market rose significantly amid the rapid expansion of international trade, which was supported by the newly inclusion of many emerging economies into the global trade system, the falling cost of transportation and rise of the internet that facilitated the information sharing across the globe. More recently, the FX market encountered headwind, especially in the area of spot trade, coinciding with the general decline of international trade. The lack of growth in the FX trading will continue as long as global economy and international trade growth do not pick up speed.