The Arab Wealth Funds and the Rise of an “Islamic Corridor”

Ben Simpfendorfer

Chapter Chapter 3 in The New Silk Road, 2009, pp 51-75 from Palgrave Macmillan

Abstract: Abstract In July 2005, the currency trading desks burst into action across the world. The euro had suddenly strengthened against the dollar. It wasn’t clear why. But the traders scrambled to dump their long dollar positions regardless. This wasn’t the time to stand in the way of the market. The traders had to pay widening spreads as the market gapped higher. The foreign currency market is the largest of the world’s financial markets, trading over three trillion dollars a day.1 A one-point miss on a hundred million euro trade would cost a trader ten thousand dollars. A ten-point miss would cost one hundred thousand dollars. A large enough move might wipe out weeks of profit. Tempers flared and keyboards were smacked hard in frustration. Losing money was bad enough, but losing money without knowing why was gutting.

Keywords: Saudi Arabia; United Arab Emirate; Arab World; Foreign Asset; Silk Road (search for similar items in EconPapers)
Date: 2009
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Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-0-230-23365-2_4

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DOI: 10.1057/9780230233652_4

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