Highly volatile exchange rate with disorderly movement represents a significant problem for both international business profitability and individuals trying to preserve monetary value. 88% of international transactions goes through the USD which alone in 2022 between January to 10th October increased 21,3% and then decreased 11,4% the following three months.
Fair Exchange Rate
Imagine an improved exchange rate system from those used in pricing of stable coins today, which are simply referring to US dollar. The price-formation mechanism of this new rate is based on the plurality of actual underlying data and not only a single-factor pricing model operating directly between two parties. It is based on bi-lateral trade volume and capital flows between countries.
First, we identify the point-of-balance (POB) for any given country which provides the optimal stability for that given country/currency.
Below you can see illustrations of POB for United Kingdom and Bangladesh, respectively:
We used this method to assess the POB of the largest nations individually to identify what we call the
global-centre-of-exchange-rate-gravity (G). The result of this study - GSU, the world’s most stable exchange rate.
Import and export volume of goods and services
Foreign Direct Investment (FDI)
Other capital flows
Shared Global Stability
The GSU system continuously monitors changes to the worldwide center of exchange rate gravity as capital flows between any two countries change and the value of their currencies fluctuate. It is updated on an ongoing basis, so that it maintains its stabilizing function, simultaneously publishing the right rates in a progressively decentralized way.
The GSU Solution offers increased price stability, which is documented to reduce price/exchange rate fluctuations by more than 50% on a global scale.