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Foreign exchange earnings in emerging markets eclipse G10

Investment banks, trading in currencies of emerging countries earn more than in the main markets of the traditional G10, as significant fluctuations in analogy with Turkish lira contrast with the relative calmness in the dollar, euro and yen.

emerging markets earn more 1704

Weak data on profits in investment banks such as Goldman Sachs underlines the slowdown in trading income, including foreign exchange earnings.

The slowdown is particularly noticeable in G10 currencies, excluding the British pound.

According to Reuters reports, thanks to data from the Coalition analytical firm, 12 of the largest investment banks registered $8.4 billion in forex revenue in emerging markets last year, while G10 member states received a total of $7.9 billion.

This trend can only be judged from the beginning of 2010, because earlier incomes in emerging markets were always lower than the profits from trading in major currencies.

The head of analytical company Georgy Kuznetsov comments on the Reuters news agency, according to preliminary data, in Q1 2019, emerging markets are again ahead, G10 revenues have dropped by almost 10 percent.

Forex earnings are limited by lower trading volumes and volatility. Banks bring in more money from volatile markets as customers trade more. But currency volatility fell to five-year lows, as large central banks, from the United States to New Zealand, became dovish.

  • The Brazilian Real (USDBRL) rose by 0.62 percent to 3.8960

  • The Indian Rupee (USDINR) went down by 0.21 percent to 69.3740

  • The Mexican Peso (USDMXN) weakened 0.17 percent to 18.8392

  • The South Korean won (USDKRW) lost 0.34 percent to 1,132.8800

  • The Russian Ruble (USDRUB) fell by 0.29 percent to 63.8925

  • The Turkish Lira (USDTRY) showed a decline of 0.86 percent to 5.7168

  • The Chinese Yuan (USDCNY) dropped 0.42 percent to 6.6843

  • The Taiwan Dollar (USDTWD) slipped slightly by 0.13 percent to 30.8130

  • The Hungarian Forint (USDHUF) reduced its value by 0.11 percent to 282.8900

  • The Czech Koruna (USDCZK) weakened by 0.15 percent to 22.7120

  • The Polish Zloty (USDPLN) went down by 0.16 percent to 3.7805

  • The Thai Baht (USDTHB) reduced the cost by 0.22 percent to 31.7600

  • The Peruvian Nuevo Sol (USDPEN) was up 0.09 percent to 3.2950

  • The Malaysian Ringgit (USDMYR) went up by 0.05 percent to 4.1330

  • The South African Rand (USDZAR) fell 0.55 percent to 13.9514

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