FX down 20%, says BIS

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BASEL -- Average global daily turnover in the forex market shrunk 20% in three years to $1.2 trillion in April 2001, the Bank for International Settlements (BIS) announced last week.

The slump -- down from a record high of $1.5 trillion daily in 1998 -- is the first time the BIS's triennial surveys have recorded a decline in forex activity.

The BIS blames three factors that have characterised the forex market since 1998 -- the introduction of the euro, which eliminated trading in 12 legacy E