The Bank of International Settlements reports that the DAILY foreign exchange volume has just about cracked the $4 trillion mark. Up from $3.3 trillion in 2007. To get an idea of the unbelievable scale of these flows, the DAILY turnover is thus larger than the total ANNUAL income of any European economy (for example, FX turnover is twice the size of the UK's ANNUAL income) and DAILY FX flows are about 1/3 of the ANNUAL income in the US. Or, to ballpark it, ANNUAL FX flows are about 70 times larger than ANNUAL US GDP…

Interestingly, the dollar maintains its status as the worlds reserve currency, despite the subprime crisis, despite quantitative easing (rounds I and II), despite record fiscal deficits, and despite the zero interest rates policy of the Fed.