June 03--THE Treasury is set to unveil plans to make the foreign exchange market more transparent by regulating it for the first time in the wake of a series of scandals to have hit the City.
It is the biggest market in the world with an estimated pounds sterling 3 trillion changing hands every day, but despite that it is very loosely regulated with no central exchange.
There have even been allegations that officials at the Bank of England also turned a blind eye to problems with FX trading.
For most, buying holiday money is the only visible part of the foreign exchange market, which is where traders bet on whether the value of a currency will go up or down.
The Chancellor George Osborne, pictured, is keen to play a leading role in cleaning up the forex market and is expected to unveil some proposals to oversee it when he delivers his Mansion House speech later this month. He has already commented on the seriousness of forex manipulation and there has been comparisons with the Libor scandal.
A spokesman for the Treasury said last night: 'A key part of the government's long term plan is building stronger and safer banks that can do more to support Britain's consumers and businesses.
'Ensuring confidence in the fairness and effectiveness of financial markets is central to this, which is why we've taken action to reform LIBOR, and why we're now using the lessons we have learned here to inform and shape the important ongoing global debate on reform.'