Ever since the 1970s, the forex markets have been vibrant and liquid, brimming with traders keen to buy and sell the value of one fiat currency against the other. According to the Bank of International Settlements, the daily trading volumes in the forex markets reached $5.1 trillion in 2016 – almost a five-fold increase on the $1.2 trillion daily liquidity in 1995.
Forex is one of the most active financial markets in the world, with some 9.6 million people thought to actively buy and sell fiat currencies between one another at agreed prices. The most popular currencies in the forex markets tend to relate to the biggest global economies. The US dollar, the euro and the Japanese yen are the three most traded fiat currencies to date. Although the Singapore dollar does not rank near the top of the pile at present, there is every possibility that the attentions of forex traders will turn to the SGD for any of the following reasons.