Ever heard of the “Tobin Tax”? Well neither had I until today. Seems like a good solution to a lot of problems… check it out here or here. The basic idea is to impose a small tax on all cross-border currency transactions. While the exact percentage varies between proposals, most versions have it at below 1 percent – the intention is to keep it small enough so as not to affect legitimate currency movements. Speculative currency trading, however, could involve very large volumes of money, which could change hands very rapidly. Under these conditions, such a system of taxation would create a more significant hindrance.
In addition, the volume of currency trading is *huge* (sorry, don’t have the figures with me, but they are, trust me on this). Even a tiny percentage of this will equate to a sizeable fund which could be use for various developmental projects.