Foreign Exchange Trade Growth s billions 1500 100 500 19986 19519998 1 McGraw-HillIrwoin @2003 The McGraw-Hill Companies, Inc, All Rights Reserved
McGraw-Hill/Irwin © 2003 The McGraw-Hill Companies, Inc., All Rights Reserved. 9-1 Foreign Exchange Trade Growth 0 500 1000 1500 1986 1995 1998 2001 $ billions
Geographical Distribution of Global Foreign Exchange Activity percentage share of total c average daily turnover) 35 30 20 1989 92 口1995 口998 55 Figure 9. 1 LcodeonNewwyookk Tobk9o S3nagipore McGraw-HillIrwoin @2003 The McGraw-Hill Companies, Inc, All Rights Reserved
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 London New York Tokyo Singapore 1989 1992 1995 1998 Figure 9.1
The Hierarchy of International Financial Centers Spamikrurt C Toronto zUrich San Chicago 7 Mad ome Francisco Tokyo york Mexico Bombay Hong Kong Ci sydney Rio de janiero sao paulo Melbourne Note: Size of dots(squares) indicates cities' relative importance McGraw-HillIrwoin @2003 The McGraw-Hill Companies, Inc, All Rights Reserved
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 São Paulo Rio de Janiero Mexico City San Francisco New York Toronto Bombay Melbourne Sydney Tokyo Hong Kong Singapore Paris Zurich Frankfurt Amsterdam Vienna Madrid Hamburg Dusseldorf Rome Brussels Chicago London Basel
Currency Use on One Side of a FX Transaction Percentage share of average daily turnover Currency April92April95April98April'01 U.S. Dollar 82 3 87 90 Ger. Mark 40 37 30 NA yen 24 21 NA Brit. Pound Swiss franc Can Dollar 49322 0733 1743 4.5 Table 9.2 Aust. Dollar ECU/EMS 15 NA E uro NA NA NA NA McGraw-HilyIrwoin o 2003 The McGraw-Hill Companies, Inc, All Rights Reserved
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. Dollar 82 3 87 90 Ger. Mark 40 37 30 NA Yen 23 24 21 NA Brit. Pound 14 10 11 13.2 Swiss Franc 9 7 7 6.1 Can. Dollar 3 3 4 4.5 Aust. Dollar 2 3 3 4.2 ECU/EMS 12 15 17 NA Euro 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 ocal Currency Big Mac Prices Actual %o Over( Table 9.3 Price in Implied Exchange or Under( Local PPP of the Rate Valuation Currency Dollar 7/04/01 Against Dollar United States $2.54 Argentina Peso 2.50 0.98 1.00 Brazil Rea|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 C 2002 by The McGrao-Hill Companies, Inc. All rights reserved
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
9-6 Macroeconomic Data for Bolivia, April 1984 October 1985 Table 9 4 Price Level Money Supply Relative to 1982 Exchange rate 984 (billions of pesos) averag e=1) (pesos/dollar 270 Me 3.512 June 440 32.3 3.342 July 34.0 3.570 August 718 391 7038 September 53.7 13685 October 1,194 855 15.205 November 1495 18469 September 3,296 1809 24515 1985 January 4.630 3053 73016 February 6455 863.3 141.101 March 9089 1078.6 128.137 April 12885 1,2057 167428 M 21,309 16357 Ju 27778 2.9191 July 4.854.6 885476 August 74,306 80810 182.300 September 103.272 126476 087440 October 124118 McGraw-HillIrwoin @2003 The McGraw-Hill Companies, Inc, All Rights reserved
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