New York City is considered the global financial hub as it is home to the world’s two most valuable stock exchanges and the most elite investment banking firms. But when it comes to currency trading and exchanging, New York City and the United States rank far behind London and the United Kingdom.
The daily value of all foreign currencies that exchange hands on a daily basis is approximately £4.73 trillion. Among that figure, UK’s excellent brokerages facilitate around £1.72 trillion worth of transactions.
The United Kingdom’s Dominance
There are several reasons why London and the United Kingdom dominate the global money transfer industry. The first has to do with the geographic proximity to the rest of the world. While traders and currency broker experts in New York City are asleep, professionals in London and across Asia are busy transacting with each other.
And when American traders and business people wake up and start the day, workers across the United Kingdom are still at their offices.
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This alone isn’t reason enough to crown the UK as the leader of forex trading. The UK government is among the most stable in the world with a rich history of democracy, freedom, rule of law, and perhaps more importantly, a dedication towards economic development.
Equally important, the country’s official language of English — the global language of choice for commerce.
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The 2016 Brexit election did little to impact the country’s finance industry. Quite the opposite holds true as some of the largest banks reiterated London as part of their long-term plans to address the global market.
Goldman Sachs, as an example, invested £1 billion for its London-based European HQ in the Square Mile region in 2019.
Société Générale announced in 2014 it will consolidate its London workers into one location and many expected the Brexit vote to prompt the French bank to look elsewhere. But in 2019, the company finalized its move into a new state-of-the-art building in Canary Wharf.
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Currency Brokerage Facts And Figures
Perhaps one fact that best highlights the UK’s dominance in foreign exchange transactions has to do with the US dollar. According to data from 2018, nearly twice as many US dollars are traded in the UK as in the US.
The following year, forex trading activity stemming from London hit a record high. The Bank of England said in its semi-annual report forex trading in London was up 7% from the prior period a year ago to around £2 trillion.
The most recent report dated Jan. 26, 2021, notes the following facts and figures:
The average daily UK foreign exchange turnover was £1.46 trillion in October.
The USD/EUR currency exchange pair was the most commonly traded with an average daily turnover of £558 billion.
Trading activity in the EUR/GBP reached a historical all-time high.
The USD/CNY currency exchange pair also reached a record high.
Currency Brokerages For Regular People
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The dominance of UK currency brokers extends beyond corporate clients transacting tens of millions of pounds at a time. In fact, the explosion of UK-based financial technology (fintech) companies over the years dominate the global competition.
TransferWise is among one of the most closely followed currency exchange companies. The London-based money transfer company boasts millions of users and was valued at around £4 billion.
The UK currency broker was born after two native Estonians met at a party in England. The two quickly realized they share an identical problem when it comes to exchanging money. By transacting with each other and ignoring a bank as a middleman, the two saved a lot of money. The two quickly realized their idea is a viable solution that can be scaled to become a global business.
TransferWise is one of many new unicorn companies — that is startups valued at $1 billion US or more. In fact, the UK is home to 45 unicorns, 18 of which are fintech companies.
Money Transfer Options Are Popular In Europe
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Money transfer companies are a lot more popular in Europe than they are in America. There are a few reasons why this is the case.
The first has to do with the close proximity of countries to each other. Within a five-hour span, someone in the UK can travel to multiple European countries so there is an immediate need to exchange currencies. By contrast, a five-hour road trip in America means a family may not even leave their home state.
Europeans are much more open to travel than Americans so by default demand to exchange currencies is greater. In fact, US citizens ranked 60th out of more than 100 countries in their openness to travel the world. This isn’t an insult or jab at Americans, rather it is just one of the many cultural differences as Americans much prefer exploring their own country.
Americans that do travel abroad tend to avoid online money exchange. Surprisingly to many, one study shows that trust in banks surged during the COVID-19 pandemic.
The pandemic reinforced an already strong sense of loyalty a customer felt with their bank. It makes sense they would choose convenience and trust over saving money through cheaper money exchange options they aren’t familiar with.
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Conclusion: Brexit Won’t Slow UK Money Transfer Industry
For years, many experts predicted that London and the UK would see their status as an economic powerhouse and a hub for currency exchanges tumble. But heading into the post-COVID recovery era, the UK’s advanced lead in administering vaccines gives it a massive advantage over its European peers that can’t go overlooked.
Regardless, the country’s tremendous advantage over the US in terms of money exchanges might be a gap that is too wide for anyone to catch up to. The dominance of UK currency brokers coupled with one of the world’s most advanced unicorn incubators may have secured UK’s financial importance for decades to come.
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Andy Burnham pledges to build 10,000 new council houses in Greater Manchester by 2028
Emily Sergeant
Andy Burnham has pledged to build 10,000 new council houses across Greater Manchester before 2028 arrives.
Following his declaration back in January that 2024 would be the year Greater Manchester “gets serious about housing”, the Mayor of Greater Manchester – who was re-elected for his third term as the region’s Labour mayor this past weekend – has vowed to tackle the housing crisis within the next decade, and is promising to build a “new generation” of council homes.
Mr Burnham is keen to put housing “centre stage” and make it a “top priority” over the course of his next mayoral term, and by 2028, he wants there to be 1,000 new council houses in each of Greater Manchester’s 10 boroughs.
This will involve identifying brownfield sites and land owned by public bodies where the homes can be built in each borough.
Also, as part of his wider housing mission, Mr Burnham has also asked the Government to devolve powers to suspend ‘Right to Buy’ on these new-build council homes and in areas of greatest housing need in a bid to help “stem the critical loss” of social housing to the private rented sector in Greater Manchester.
This request comes after it was revealed that our city-region has lost nearly 24,000 homes to ‘Right to Buy’ within in the last 20 years – including 571 sold in 2022-23 alone.
Some of the other housing measures announced by the Mayor yesterday include the introduction of a pilot scheme – which would be rolled-out across Greater Manchester by the end of 2024 – that offers residents the right to request a property check, and the opening of the new ‘GM Good Landlord Charter’ to applications by the summer, setting out standards for rental properties, and supporting landlords to meet them.
Mr Burnham will also look to expand the much-valued ‘A Bed Every Night’ scheme to at least 600 places every night during his third mayoral term to provide “crucial support” to rough sleepers as the rising cost of living crisis continues.
The Mayor has confirmed he will continue to donate 15% of his salary each month to support the scheme.
“Greater Manchester can’t achieve its full potential as long as it remains in the grip of a housing crisis,” Mr Burnham explained as he set out his plans for the future as Greater Manchester’s Mayor.
“That is why I am setting a new ambition for the city-region to end it within a decade.
“Everyone deserves to live in a good, safe home, and by building new council homes, and by suspending the Right to Buy on them, we can give our Councils the breathing space they desperately need to replenish their stock, so that all of those waiting in temporary accommodation or on the housing registers have the chance to access good homes.”
Featured Image – Benjamin Elliott (via Unsplash)
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A young lad is walking all the way from Manchester to Ibiza for a truly tear-jerking cause
Danny Jones
We recently came across the story of a young man who has set himself the task of walking all the way from Manchester to Ibiza in an effort to raise money for a truly tear-jerking charitable cause.
In case you haven’t heard of him already, the legend responsible behind this is Henry Oscar Moores, a 21-year-old from Macclesfield in Cheshire who is essentially completing a marathon every single day to complete his voyage from rainy 0161 to sunny Spain.
Nearly halfway into his epic trek already, the youngster has been battling plenty of obstacles, not least heavy rain – and that was just here in Greater Manchester…
Going live each day as thousands of followers tune in to support his latest steps, his real-world journey has sparked a wholesome new community online and we’ve got nothing but the utmost respect.
It’s set to take him around 60 days in total, all being well, but what exactly is Henry Moores doing all this for? Or rather who?
Well, the answer is as heartwarming as it is heartbreaking, as the ‘Henry Walk’ from Manchester to Ibiza is all in aid of the Tony Hudgell Foundation, a charity set up in honour of the now nine-year-old boy of the same name and the youngest ever Pride of Britain winner.
Hudgell was sadly the victim of horrific child abuse ever since he was a toddler, so much so that he had to have both of his legs amputated as a result of the treatment. In 2020, when he was still just five, Tony set out to raise £500 by walking 10k in his prosthetic legs. He ended up amassing £1.8m. Incredible.
With a non-profit officially registered in his name since 2021, the organisation aims to provide support to children affected by physical, emotional or psychological abuse. His story also helped usher in Tony’s Law. Now taking over the reins, Henry is pounding the pavement on his behalf – and smashing it.
He’s even been given an added incentive by Ibiza’s Ocean Beach owner, Wayne Lineker.
Promising to help Henry finish the walk if he makes it all the way to his final 30k leg in Ibiza Town to the famous club – he’s already polished off the 507km from Manchester to Portsmouth and is currently chipping away at the 1818km stint from Caen in France to Denia – Lineker and the likes of radio DJ Charlie Sloth have been backing the effort since day one.
Describing Tony as an inspirational young figure “who captures hearts with his bravery, optimism, and infectious smile”, even despite his daily struggle and constant treatment, we can’t overstate the admiration we have for both of them. He’s already smashed his initial £20k and just keeps going.
“We really appreciate any donations; we know times are tough. Don’t hesitate if you can’t donate; continue to share and support us in any other way. Thanks to everyone for the past couple of weeks; it’s been insane.” You can do your bit by donating HERE or to Tony Hudgell’s operation fund directly.