Forex and World Trade

24 June 2016, 19:12
Sherif Hasan
0
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According to the World Bank Trade Data (IBRD-IDA) -World Integrated Trade Solution (WITS) , the Total World Trade during 2014 equal to 19.01 trillion USD for imports and 19.06 trillion USD for exports . The annual growth rate was 2.7% & 3.3 % for imports and exports respectively. Import and Export Products include consumer, intermediate and capital goods, machines &electronics, stone&glass, plastic or rubber, wood , metals, chemicals, fuels, animals, food products, vegetables ,raw materials, textiles &clothing ,hides & skins, footwear, miscellaneous and transportation.

Machines & Electronics followed by fuels are the leading products whereas United State of America (USA) and China are the leading countries in both import and export . Early during 2013 , Forex trade expected to reach as high as 5.3 trillion USD per day, which roughly equilibrate more than 30-times the total World Product trade . The figure remains hypothetical .The hypothetical test for global OTC derivative markets by Bank International Settlements (BIS) predicts over than 600 trillion USD each year during 2013 and 2014 as an International Principal Value going mostly with interest rates .

The gross market value which equilateral to the International Trade also mostly going with the interest rate. Essentially the market volume consists of baseline interest rate ,Commodities , equities, swaps and unallocated whether International or Forex trade. The total Forex volume according to Thomson Reuters equal to 4.34 trillion USD during 2015, and the estimated Forex spots volume equal to 1.331 trillion USD.

When comparison Forex spots with World Trade from CPB World Trade Monitor for economic policy analysis data ,during 2015 the followings concluded : 1- The Global Forex Spot Trade is slightly higher than the World Real Trade in Fuels – taken in considerations the sharp descent of oil prices during 2015 . 2- The Global Forex Spots may rise higher than USA Exports . Forecasts through 2016 remains relatively challenging regarding Oil Prices.

USA Trade may relatively unchanged during 2016 , although the World annual growth rate points to 2.7% . We expect that Forex trade will grow along with the World Product Trade.

Importance of Forex : As the Forex trade influenced by economic indicators , it also affects the economic calendar. Forex trade communicate the World electronically, provide liquidity and make easier and faster transactions. Forex trade also play a role in redistribution of liquidity through World Communities. In addition to the psychological aspects of Forex , Forex also has a potential image for the new civilizations or World. The World that reconstructed on basis of economic calendars. The most important value in Forex Trade is freedom. Competitions with freedom implicate insights and incentives toward prices and economy. Finally Forex is powered by demo accounts , leverages , regulations and economic information’s but remains risky and exposed to fake.

Online Resources :

1- Data.Worldbank.org/topic/trade 
2-www.bis.org
3-Thomsonreuters.com/en/resources/Fx/volumes.html
4-www.cpb.nl/en/world-trade-monitor
5-http://www.tradingeconomics.com
6-http://www.dnb.com/lc/credit-education/global-economic-outlook-2013-to-2017.html.

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