Submitted by Daniele Santos (danielesantos.htl@gmail.com) on 2017-01-18T19:26:37Z No. of bitstreams: 1 Martin Cottard, v28 (1).docx: 628181 bytes, checksum: 5982513672c7342dff2d897820eb08f0 (MD5) / Approved for entry into archive by Janete de Oliveira Feitosa (janete.feitosa@fgv.br) on 2017-02-23T17:42:59Z (GMT) No. of bitstreams: 1 Martin Cottard, v28 (1).docx: 628181 bytes, checksum: 5982513672c7342dff2d897820eb08f0 (MD5) / Made available in DSpace on 2017-02-24T18:41:57Z (GMT). No. of bitstreams: 1 Martin Cottard, v28 (1).docx: 628181 bytes, checksum: 5982513672c7342dff2d897820eb08f0 (MD5) Previous issue date: 2016-11-11 / The currency markets are dominated by the few greatest currencies (as $, €, ¥, £ …). Their strong influence is gathering many currencies around them. From the outside, it looks like a large group of correlated currencies. - How many large groups of correlated currencies exists? What currencies are included? When considering all the currencies of the world, there are thousands of possible influences. This means a huge number of correlations to study. This is not convenient. - Is there a visual tool that can helps us to find our way, among all the numerous correlations? We propose here a simple tool to answer to those questions: the currency map. This map is a plot of more than 100 currencies. It’s easy to locate a specific currency and to find its close neighbors. And close neighbors often have similar fluctuations. We provide several examples of using this map: - An example explains how to share equally the currency risks between parties, in an import/export business. - An example explains how to create an optimum currency basket, which perfectly minimized the fluctuations over the last 10 Years. - An example to inform about the risks of contagion, in case of a local currency crisis.