Tim Sangston of Greenwich Associates says that one visible
trend in global foreign exchange trading in recent years has
been the growing share of volume accounted for by emerging
market currencies. "This year, about 58% of the accounts we
interviewed said they were active in emerging market
currencies," he says. "That compares with 52% a year ago and
about 45% the year before that."
These findings are broadly corroborated by data published by
the Bank for International Settlements (BIS) on the currency
distribution of reported foreign exchange turnover, although
the official figures also underscore how modest these volumes
remain in relative terms. The BIS figures are expressed on the
basis of a total market of 200% (as both sides of each trade
are recorded). Of that total, currencies showing increases that
are representative of the global trend include the South
African rand (up from 0.3% in 1992 to 1% in...