FIELD OF THE INVENTION This invention relates to a method of calculating currency exchange rates and reporting it for use in foreign exchange trade and valuation.

BACKGROUND TO THE INVENTION The present method of paring currency values for valuation and reporting is not ideal in an environment where currencies are no longer printed commodities. With the adoption of virtual, or online currency, a direct valuation system of currency exchange is required where each and every currency is valued independently, and not as a function of a paired valuation. In addition, the global debt and financial crisis of 2008, prompted by exchange rate instabilities, has resulted in increased calls for a new "Standard Global Currency" to reduce the dependence of international currencies on the US dollar ("USD"). It is generally believed that the effect of the mentioned 2008 crisis on the U.S. economy affected the rest of the world due to the dependency of other currencies on the USD. World inter-currency trade is in turmoil and in desperate need of a make-over in the post-2008 economy.

The present model of currency exchange (forex) is driven by stronger currencies and has proven to be inefficient with desperate consequences to weaker currencies due to inter- currency dependence under the existing model. The USD is not the only major currency on which other currencies depend, and other major currencies include the British Pound Sterling ("GBP") or Euro (€). If a crisis similar to the 2008-crisis were to hit Britain or the Eurozone, it is likely to have a similar global impact on other currencies and therefore other countries, albeit possibly not as severe. Presently, the strength, variability and financial performance of international currencies are generally determined by measuring each currency's performance against a "Basket of Currencies" and the country's own economic strength. By definition, a group of currencies, each of which is weighted, are calculated together as a single unit in establishing a standard of value for another unit of currency. This weighted method has evolved into a highly complex method of cross-currency conversion reporting in which currencies are reported in pairings, namely: USD - GBP; USD - EUR; USD JPY;

GBP -EUR; GBP - JPY; GBP USD;

JPY - EUR; JPY - GBP; JPY USD; etc.

Considering that the International Standards Organisation (ISO) records 164 primary currencies, collectively, this method is complex, archaic and clumsy. In addition to this, there are actually over 200 currencies that are used are traded to some extent (even though some are not traded in great volumes).

Each of the 164 ISO currencies has a dynamic value under the present model that is interconnected to the values of all the other currencies. Presently there is no single value for a currency relative to other currencies. Whenever a currency is quoted with reference to another currency, such reference reflects the relative value between the two currencies. This is known as exchange rate pairing.

Most currencies are not expressed with reference to all other currencies. Typically, most currencies are referenced with respect to several key currencies, such as the USD,€, and GBP. If a person holding Thai Baht ("THB") wishes to purchase Icelandic Krona, he would first need to purchase USD with his THB, and then purchase Krona with the USD. The reason for this is that THB is not directly referenced to Krona. It is indirectly referenced to Krona through an intermediary currency.

The underlying reason for this is that a value of a currency relative to other currencies is determined by trade. Monetary agencies, such as banks, that trade in currencies engage in daily transactions between various currencies. Typically, for example, in Thailand currency traders will not wish to purchase Krona, since it may not have a ready market for it. Instead, they do have market for USD,€ and £. The traders are therefore willing to trade THB for USD,€ or £, which means there is transactional data available for THB relative to these currencies.

There are of course several currencies other than USD, € and £ that most traders in a specific region will trade in, but notably the major trading currencies will most always be USD,€ or £. In addition to this, with the USD having been the strongest and most reliable currency in the world, exchange rates for most of the 164 currencies are quoted with reference to USD. This effectively links the value of those currencies to the USD. With a high transactional volume comes a higher volume of data which allows currencies to be referenced to each other continuously. Most currency converter services cater for their local markets. The local currency will therefore be quoted against a number of other currencies, including the USD,€ or £ (with the USD being favoured as the de facto reserve currency). Currencies that are not traded will not be shown. The exchange rates that are shown for currencies that are traded less against the base currency of the specific country may be based on an intermediate transaction, such as first buying USD,€ or £ and the using that to purchase the desired currency.

It is also important to understand that the value that may be obtained for converting between two currencies is therefore, by definition, not necessarily the same in different countries. A person selling THB for USD in Thailand may achieve that with a more favourable exchange rate that a person selling THB for USD in Brazil at exactly the same time.

In each territory specific traders (for example commercial banks) drive transactional data and such data is used to determine the relative values between currencies. It is estimated that there are between 200 and 500 million financial transactions per day worldwide, and the data relating to this is used to determine the mentioned paired exchange rate values. A currency's value to other currencies in a specific territory therefore, to a large extent, depends on the trade conducted by a small number of major banks in such territory. The trading data for the trading entity selling THB for USD in Thailand is different from the trading data of the entity USD for THB in Brazil, which leads to the different valuations of this specific pairing between THB-USD at any given time. The same applies to all other currencies.

The limited trading in specific territories therefore yields local value differences, and this is reflected in the differing pairings provided at the same time by different traders.

Therefore, no currency has a universal value against any other currency anywhere in the world at any given time. If a Thailand company wishes to import goods from another country, for example Australia, it needs to make payment for those goods to the manufacturer in Australia. Since the manufacturer is not a Thai company it will not accept payment in THB. It will likely accept payment in either Australian Dollar ("AUD") or USD.

It is likely that the local bank in Thailand through which the importer deals will not hold AUD but it is likely it will hold USD. The transaction will therefore most likely be done by the purchase of USD from the Thai bank and the remittance of the required amount to the bank of the manufacturer in Australia. In Australia the process is reversed with the purchase of AUD using the USD, this time through the hands of the Australian manufacturer's bank. The same applies to an Australian company that wishes to import something - it has to use AUD to purchase foreign currency, typically again USD, to make payment for the purchase.

The result of this is that the USD, and to a lesser extent the€ or £, have become the de facto reserve currencies for the world. Banks that handle forex purchases for international trade will keep in hand a supply of USD, and to a lesser extent€ or £, for these trades.

This locks up a lot of USD in the hands of traders, most of which are not in the USA. This keeps most of the USD that is in circulation at any given time out of the hands of the USA economy. The only way for such foreign held USD to move back into the USA economy is by exports from the USA economy.

The need to trade through another currency to obtain a desired currency, inevitable links the minor currency to the major currency. This becomes a problem when the major currency represents the economy of a specific territory, since it creates an artificial demand for that major currency that artificially benefits that economy and ignores the inherent value of other economies.

As mentioned above, for various reasons most currencies are primarily referenced to the USD, which makes the USD the de facto reserve currency. This references the USD to such other currencies as much as they are referenced to the USD. In the aftermath of the economic meltdown of 2008 the fiscal problems of the USA spilled over to other countries in part because of this interdependency. The effect of this is that the USA is inadvertently exporting its currency inflation and economic recovery to other countries. In the wake of the 2008 crisis exports from the USA are down, which means less USD are available in the USA. This makes it difficult for the USA itself to function and this contributes to the printing of more currency in the USA to meet the need for it. This has an inflationary effect which decreases the value of the USD. This decrease in value applies to the USD everywhere, including that held in the hands of non-USA traders, banks and international governments. The value of the reserves held by such non-USA interests therefore decreases, which means that the currency inflation form the USA is exported across the world.

The non-USA traders cannot simply dump their stock of USD, since it needs to be traded for something else, and they still need USD to make payment for imports from their own countries.

This situation is not good for any of the countries involved in this. The USA does not have enough USD currency in circulation and currency traders in other countries that hold significant amounts of USD in stock are exposed to USD currency inflation, which causes a ripple effect of inflation in their countries.

Had the vast number of foreign currencies not been linked in the above manner to the USD and the holding of USD as reserve, the USA currency inflation would not have been exported to other countries. The USA would not have been short of currency to meet its own needs and the USA could have counted entirely on its own economy to manage its financial recovery.

Another effect of this primary reference to the USD is that it belies the value of some other major currencies and overstates the value of the USD. This in turn understates the relative strength of some other economies and overstates the importance and strength of the USA economy. An example of a country that is detrimentally affected by this is China.

Conservative institutions such as the IMF, World Bank and the UN are unanimous in their calls for the establishment of a Global Standard Currency to overcome the current crisis and prevent a future repeat. It bears noting again that a crisis in Britain or the Eurozone similar to the 2008-crisis could have similar ripple effects across the world.

Some advocates of a Global Standard Currency cite the primary reasons as the need to eliminate:

· direct and indirect transaction costs of trading currencies;

• the Balance of Payments/Current Account difficulties; • the risk of currency failure;

• uncertainty of changes in value due to exchange-caused fluctuations in currency value and the costs of hedging to protect against such fluctuations;

• misalignment of currencies;

· the need for countries or monetary unions to maintain international reserves of other currencies; and

• reduce worldwide inflation;

• Utilize the seigniorage benefit (which relates to the cost of printing money relative to the face value of currency) and control of printing money for the operations of the global central bank and for public benefit

The most important motivations in favour of a Global Standard Currency would be the creation of autonomous international currencies, not linked to "senior or major currencies", which are capable of self-sustaining variability according to domestic and global market forces and the improved accuracy of global, multi-currency, snap-shot valuations, reducing multiple commodity valuations to a single denomination using the constant denominator.

However, this generally proposed belief that a single world currency is the solution to the problems of the current system, has failed to materialise as this is practically impossible to implement. Without addressing the various hurdles to this, it should be noted that currencies represent individual autonomous countries or territories. Just as unlikely as the creation of a single world government due to political and cultural differences, so unlikely is the creation of a single world currency for, amongst other reasons similar political reasons. OBJECT OF THE INVENTION

It is an object of the invention to provide a method of calculating and reporting currency values which simplifies the international manner of currency value reporting while, at least partly, overcoming the abovementioned problems and secondarily creates an artificial global index (currency reference).

SUMMARY OF THE INVENTION

In accordance with this invention there is provided a method of calculating a value for a currency which includes collating and at least periodically updating a data set of currency trade data from a plurality of predeterminable trade data sources, and calculating a value of the currency against a predetermined static index value as the weighted average of the number of transactions over the value of transactions in respect of the currency. There is further provided for the method to include setting initial values of currencies against the index by setting the index at a specific value equal to an initial base reference currency, and to initially set other currencies against the index at their then present value against the initial base reference currency. The invention further provided for the index to be set at a value of 100 points, and for the initial base reference currency to be set at a starting value of 100 points.

There is still further provided for the initial base reference currency to comprise one of the United States Dollar, Euro, or Pound Sterling, preferably the United States Dollar.

There is further provided for the trade data to be obtained from institutional and non- institutional traders.

According to a still further feature of the invention there is provided for the method to include calculating a value of a currency against the index value by making use of the following algorithm to calculate a change in the trading value of each currency forming part of a collection of currencies, the algorithm being adapted to determine a value for each currency from the collection of currencies against the static index, and comprising:

HC _V

HC _C = X GFI

AlogHCt in which

HC is the currency of which a change in value is being determined, and is referred to as a Home Currency;

HC _C is the calculated value of HC;

HC _P is the present value of HC;

AlogHC, is the change in the calculated trading value of HC determined over time t;

represents the difference in time between the calculation of HC _P and HC _C , and is indicated in subscript throughout the algorithm; and GFI is the Global Forex Index, which is a constant.

There is further provided for the change in the calculated trading value of the Home Currency AlogHC _t to be determined by means of the algorithm:

AlogHC _t = c + ∑w(j) * AlogX(j) _t + &{Aemp _t ] + u _t in which

c is a weighting coefficient of the collection of currency values consisting of all world currencies excluding HC;

w(j) are currency weights in basket, cumulatively determined by recent historical value, determined by volume, value and balance of payment performance over a pre-determined period, excluding HC;

X(j) is a collective value of all foreign currencies excluding HC, defined in terms of a suitable numeraire j, such as, for example, the static value of GFI;

is a reference of a currency to a suitable numeraire, as stated above, or such as a Special Drawing Rights ("SDR") value, as proposed by China et al, although SDR's are not favoured nor proposed and, for the purpose of this patent, are replaced by GFI;

AlogX(j), is the change in the collective trading value of all other foreign currencies, excluding the home currency, over time t;

∑w(j)AlogX(j) _t is the sum of the factor of w(j) and AlogX(j) _t for all currencies excluding HC;

Aemp, change in Exchange Market Pressure which is over time t, derived from influences such as GDP ratio, inflation, Forex turnover, lag-share, reserve volumes and currency manipulation;

is a flexibility parameter, to be estimated as:

β=1 , if the currency floats purely (no changes in reserves); or β=0, if the exchange rate is purely fixed.

is an interceptor or constant term; Ut is an error term or disturbance term, representing all the unknown factors that are not explicitly included in the equation, and which are relevant to the algorithm over time t. According to a still further feature of the invention there is provided for the term∑w(j)AlogX(j) _t to comprise:

∑w(j)AlogX(j) _t

= w(l)Alog$ _t + w(2)Alog€ _t + w(3)Alog¥ _t + w( )Alog£ _t + w(l)Alog€ _t + w(5 — n)Alog(5— ri) _t in which:

w(1) is the USD currency weight determined by recent historical value, determined by volume, value and balance of payment performance over time t;

Alog$t is the change in the trading value of the USD currency over time t; w(2) is the EURO currency weight determined by recent historical value, determined by volume, value and balance of payment performance over time t;

Alog€ _t is the change in the trading value of the EURO currency over time t; w(3) is the JPY currency weight determined by recent historical value, determined by volume, value and balance of payment performance over time t;

Alog¥ _t is the change in the trading value of the ¥ currency over time t;

w(4) is the GBP currency weight determined by recent historical value, determined by volume, value and balance of payment performance over time t;

Alog£ _t is the change in the trading value of the £ currency over time t;

w(5-n) is the currency weight for each other currency determined by recent historical value, determined by volume, value and balance of payment performance over time t; and

Alog[5-n], is the change in the trading value of all other currencies, excluding the home currency, over time t, where there are "n" currencies taken into consideration. According to a further feature of the invention there is provided for the term Aemp, to comprise:

ARest _t

Aempt = AlogHCt + _MQ ^ in which:

ARest, is a change in the collective individual values of all other foreign currencies, excluding the home currency and primary currencies specifically stated in the formula; and

MB, is a value for the Monetary Base, and is a calculation of the variance between "basket peg" and "flexible exchange rate" as defined by

Messrs Frankel and Wei.

These and other features of the invention are described in more detail below. BRIEF DESCRIPTION OF THE DRAWINGS

A preferred embodiment of the invention is described by way of example only and with reference to the accompanying drawings in which:

Table 1 is a table showing currency values using the present currency pairing system, taken at a given time in one country, for example in New York;

Table 2 is a table showing currency values using the present currency pairing system, taken at the same time as Table 1 in another country, for example in London; and

Table 3 is a table showing the values of currency against the Global Standard Index, taken at the same time as Tables 1 and 2.

Table 4 is a table showing examples of the application of forex transactions using the

Global Standard Index to determine a single currency value.

Tables 5 & 6 depict Balance of Payment data collected from real-time and historic transactional information.

DETAILED DESCRIPTION OF THE INVENTION

As mentioned above the invention aims to provide a method of calculating and reporting currency values. This will:

• Simplify currency valuation; • Provide a global index-based unique valuation for each currency, which incorporates a reporting method for the currencies as such calculated values;

• Creates a world foreign exchange ("forex") standard (index) free from pairing dependencies;

· Results in the establishment of a global valuation for each international currency against a constant benchmark or index.

The invention thus provides for a method of attributing a single value to any currency anywhere in the world as measured and reported against the international standard index. When a specific currency is mentioned in one country the value thereof at such time will be the same as in any other country. For example, the value of THB may be 3.23 with reference to the index. This value will be the same wherever the value of THB is requested, irrespective of location in the world. The value of the Baht may rise and fall against the index. Since the index itself remains constant at 100 points, the value of the THB reflects its value against the index, and it is not paired with other currencies. Specifically, the THB is not quoted against the USD. If economic problems occur in the USA, for example, the primary effect will be that it will drop to a lower value against the index. Similarly, if the USA economy experiences an upturn which benefits its economy, this trend will be reflected as an increase of the USD against the index, which will not directly affect the value of the THB.

For example the value of the USD may drop to 90. This will not have a direct impact on the value of the THB, since the THB trades to the index, not the USD. Similarly, if the value of the USD improves it may rise to 1 10, which does not directly affect the value of the THB, since both trade to the index, and not to each other. This removes from the valuation of currencies local trading influences and allows currencies to reflect more accurately the value of an economy represented by such currency. By making use of the invention, simply speaking, the method of quoting exchange rates will change from the currency pairing shown in Tables 1 and 2 to the singular currency valuation shown in Table 3.

At a specific time, to which the table in Figure 1 relates, in New York, USA and as quoted by a specific trader, the value of the AUD will be 1 .054 against the USD. This quoted value for the AUD will not be the same as that quoted by another trader in the same country at the same time, or by another trader in another country at the same time.

This is exemplified by Table 2 which shows a similar paired value quoting from a trader in London, UK. This quotes the AUD at 1 .060 against the USD.

Using the method of the invention, at the same specific time that the exchange rates in Tables 1 and 2 are quoted, the value of the AUD will be 1 .054 against the Index, anywhere in the world for any trader using the invention. Considering in this example that the value of the USD against the index is 100, it means that the relative values for the AUD will be same, in this example, as in New York, but not the same as in London. The value of the AUD against the index (and thus indirectly against the USD which in this example is at 100), will be 1 .054 anywhere in the world, for any trader. To determine the value of each currency against the index a set of calculations are conducted, using the principle of calculating the individual currency value as a fraction or multiplier of the international constant index value. The index is set as the Greek hekaton (100). It will be appreciated that the index may be set as any value and that the value of 100 is selected for the sake of simplicity. It could equally well have been 200, 500, or 1000, or even 10 or 1 . However, whatever the value it must be kept set as 100.

The currencies values are calculated according to the invention by using an algorithm that takes into account various factors that influence the value of currencies in trade and reflecting these in a single index value. This produces currency values determined by individual historical currency performance data collected in a control database using own- data collected at a single source. These calculations are performed continuously and quoted to traders. If a trader wishes to book a transaction using the quoted index value, he pays a transaction fee. This specifies the current values of the currencies that he wishes to trade in for his transaction.

Initially the value of the various currencies will be set at values reflecting current exchange rate data, with the initial value of the USD set at 100 to reflect the position of it as global reserve currency. However, as soon as the system of calculating and reporting currencies using the invention is activated it will report the values of the various currencies, including the USD, in actual trading data and the values of the individual currencies to the Index will alter, either up or down. Table 4 provides an example of the weighting effect of cross-global trade in similar currency on the value of such currency. As can be seen in row 1 , an Australian bank purchases€ using AUD. The selling volume is AUD 750 000 at a rate of 105.41 against the index.€593959.00 is bought using this at a rate of 75.13 against the index. This value is calculated as follows:

SCRate PCRate

BVol = SCVol x — x

Index Index In which:

BVol = Buying Volume, in this instance in€;

SCVol = Selling Currency Volume, in this instance AUD750 000;

SCRate = Selling Currency Rate against the Index, in this instance 105.41;

Index = 100

PCRate = Purchasing Currency Rate against the Index, in this instance 75. 13; which resolves for the trade of row 1 of Table 4 to:

105.41 75.13

BVol = 750 000 X X = 593 959.00

100 100 In row 2 a trade is represented in which the Australian government purchases reserve€ using AUD 14 500 000, at a rate of 105.3963 against the index. This purchase yields€1 1 475 155.38 at a rate of 75.0871 against the index.

In row 3 a trade is represented in which a German equipment supplier buys AUD 10 000 000.00 at a rate of 105.414 using€ 7 920 495 at a rate of 75.137106. In this instance, with a specific Buying volume required to be purchased using another currency, the amount required is calculated as follows:

SCRate PCRate

SVol = BCVol x — x

Index Index which resolves for the trade of row 3 of Table 4 to: 105.41396 75.13706

SVol = 10 000 000 X X = 7 920 495

100 100

This means, the German supplier has to spend€ 7 920 495 to purchase the required AUD 10 000 000.00 for this trade. Rows 4 and 5 of Table 4 are further examples where a specific amount if AUD is traded for€, and the buying volumes are therefore calculated according to the same formula as that used for in the examples of rows 1 and 2 of Table 4 above.

The collective trade, in this example, of AUD impacts on the value thereof. Assuming that for a period over which the change in value is calculated the five listed transactions are the only ones, then the total trade in AUD for that period is the sum of the trade in AUD, which in Table 4 amounts to the total of 750 000 + 14 500 000 + 10 000 000 + 3 000 + 415 000, which amounts to a total trade of AUD 25 668 000 for the period of calculation.

Each of the five trades contributes proportionally to the total trade, which in the instance of the trade in row 1 of Table 4 means that it contributes:

750 000

^PrOpOrtiOn = ^66^0 ^{% = 2} - ^9219%

The proportions to which the other trades contributed are also shown in Table 4. The weighted impact on value of the AUD for these five trades is calculated as follows

Tlrate Tlrate T3rate T rate T rate

AUDrate =— +— +— +— +— -

Propl Prop Prop3 Prop PropS in which: the weighted trade rate for the period of calculation;

the AUD rate used in the trade of row 1 of Table 4;

the percentage that the trade of row 1 of Table 4 contributed to the total trade in AUD for the period of calculation;

the AUD rate used in the trade of row 2 of Table 4;

the percentage that the trade of row 2 of Table 4 contributed to the total trade in AUD for the period of calculation; T3rate = the AUD rate used in the trade of row 3 of Table 4;

Prop3 = the percentage that the trade of row 3 of Table 4 contributed to the total trade in AUD for the period of calculation;

T4rate = the AUD rate used in the trade of row 4 of Table 4;

Prop4 = the percentage that the trade of row 4 of Table 4 contributed to the total trade in AUD for the period of calculation;

T5rate = the AUD rate used in the trade of row 5 of Table 4; and

Prop5= the percentage that the trade of row 5 of Table 4 contributed to the total trade in AUD for the period of calculation; which resolves for the five trades Table 4 to a calculated value of AUDI 05.40.

This demonstrates quite clearly that currency value will still be determined by sound capitalist influences and not by the method according to the invention. This confirms that the method according to the invention merely captures and reports market economics, and does not shape or influence it.

It should be borne in mind that the calculation can be applied automatically in respect of vast numbers of trades, and that the period for which the calculation is performed may be very short, such as for a couple of seconds. This will provide very accurate real time trading values for currencies using the method.

In this manner calculations are conducted on the weighted impact of actual trades in currencies on the actual value of the currencies, to be reported by the method according to the invention.

In general terms, the algorithm utilised by the invention comprises the following:

HC _P

HC _C = X GFI

AlogHCt in which:

HC is the currency of which a change in value is being determined, and is referred to as a Home Currency; HC _C is the calculated value of HC;

HC _P is the present value of HC;

AlogHC _t is the change in the calculated trading value of HC determined over time t; represents the difference in time between the calculation of HC _P and HC _C , and is indicated in subscript throughout the algorithm; and

GFI is the Global Forex Index, which is a constant.

The calculated trading value of the Home Currency (i.e. AlogHQ) can be further expanded and calculated by means of the algorithm:

AlogHCt = c + ∑w(j) * AlogX(j) _t + &{Aemp _t ] + u _t in which

c is a weighting coefficient of the collection of currency values consisting of all world currencies excluding HC;

w(j) are currency weights in basket, cumulatively determined by recent historical value, determined by volume, value and balance of payment performance over a pre-determined period, excluding HC;

X(j) is a collective value of all foreign currencies excluding HC, defined in terms of a suitable numeraire j, such as, for example, the static value of GFI;

is a reference of a currency to a suitable numeraire, as stated above, or such as a Special Drawing Rights ("SDR") value, as proposed by China et al, although SDR's are not favoured nor proposed and, for the purpose of this patent, are replaced by GFI;

AlogX(j), is the change in the collective trading value of all other foreign currencies, excluding the home currency, over time t;

∑w(j)AlogX(j) _t is the sum of the factor of w(j) and AlogX(j) _t for all currencies excluding HC;

Aemp, change in Exchange Market Pressure which is over time t, derived from influences such as GDP ratio, inflation, Forex turnover, lag-share, reserve volumes and currency manipulation;

is a flexibility parameter, to be estimated as:

β=1 , if the currency floats purely (no changes in reserves); or β=0, if the exchange rate is purely fixed. c is an interceptor or constant term;

u _t is an error term or disturbance term, representing all the unknown factors that are not explicitly included in the equation, and which are relevant to the algorithm over time t.

The term∑w(j)AlogX(j) _t compr ses: ∑w j)AlogX j) _t

= w(l)Alog$ _t + w(2)Alog€ _t + w(3)Alog¥ _t + w( )Alog£ _t + w(l)Alog€ _t + w(5 — n)Alog(5— ri) _t in which:

w(1) is the USD currency weight determined by recent historical value, determined by volume, value and balance of payment performance over time t;

Alog$ _t is the change in the trading value of the USD currency over time t; w(2) is the EURO currency weight determined by recent historical value, determined by volume, value and balance of payment performance over time t;

Alog€ _t is the change in the trading value of the EURO currency over time t; w(3) is the JPY currency weight determined by recent historical value, determined by volume, value and balance of payment performance over time t;

Alog¥ _t is the change in the trading value of the ¥ currency over time t;

w(4) is the GBP currency weight determined by recent historical value, determined by volume, value and balance of payment performance over time t;

Alog£ _t is the change in the trading value of the £ currency over time t;

w(5-n) is the currency weight for each other currency determined by recent historical value, determined by volume, value and balance of payment performance over time t; and

Alog[5-n], is the change in the trading value of all other currencies, excluding the home currency, over time t, where there are "n" currencies taken into consideration.

The term Aemp, comprises ARes

Aemp _t = AlogHC _t +

MB,

in which

ARest, is a change in the collective individual values of all other foreign currencies, excluding the home currency and primary currencies specifically stated in the formula; and

MB, is a value for the Monetary Base, and is a calculation of the variance between "basket peg" and "flexible exchange rate" as defined by Messrs Frankel and Wei (refer "Estimation of De Facto Exchange Rate Regimes: Synthesis of the Techniques for Inferring Flexibility and Basket Weights", J Frankel & S Wei, IMF Staff papers, Vol.55, No. 3, International Monetary Fund, 2008) These authors also suggested presented the basic calculation for the calculated trading value of the Home Currency (i.e. AlogHC _t ), discussed above. Another benefit of reporting collected data will be the accurate, real time reflection of each currency's balance of payments. This is shown in Tables 5 and 6.

Importantly, since no currency is linked to the reserve of the USD, a change in the USA economic situation will affect the value of the USD to the index, and not directly the other currencies. Similarly, the value of other currencies will reflect their trading on world markets free of being weighed down or buoyed by the USD. Importantly, the value quoted for a specific currency will be universal - someone buying AUD with USD will pay the same whether the transaction is conducted in London, Sydney, New York or Bangkok, or anywhere else in the world where a trader uses the invention.

To the extent that the system, according to the invention, relies on trade data it does not need to aim to replace existing trade channels. The impact of all trades in currencies that are included in the trade data set, will impact on the calculated and reported currency values. If a trader elected to use its own paired valuation for two currencies, possibly because of more favourable local conditions, then such trade will be reflected in the trade data set, and this will draw the values reported by the system of the invention closer to the specific paired valuation for two currencies. This will reduce the difference between the local paired valuation and the index based calculated value of the invention. The incentive for a trader to use the specific paired valuation for the two currencies over the index based calculated value thus diminishes. If the difference between the local paired valuation and the index based calculated value of the invention is such that the latter is more favourable to the trader, then he will have an incentive to use the system, which will reinforce the calculated value of the index.

In this way will the system reports a value for each currency that is current and relevant, and the system is self-regulatory. Trades that are done outside of the index based value, will be incorporated in the index values which will reduce the profit from such trades and will provide an incentive to such traders to use the index based value.

The invention can thus be launched as a system for the calculation and reporting of currency values against a single constant and independent index, which is not equal to any other currency. The system will:

• Host and announce real-time, globally matching, independent currency exchange rates;

• Require no political or global economic approval for roll-out and implementation

• Is not influenced by, nor dependent on any political persuasion or intervention

• Is capable of creating a new global standard, meeting all the objectives and criteria of a Standard Global Currency as a virtual instrument, without actually creating a currency;

• Is self-protecting insofar as it generates and analyses transactional data ("Big Data") and issues a "new" series of global exchange rates in real time, thus any replication or reproduction would be instantly outdated and superfluous;

• Can be hosted internationally, flanking every financial and trading package, simply quoting and fixing a variety of currency exchanges, for use in global trade

Although not fundamental to the invention, a further benefit of the invention is the single point collection of reliable data in a private or public database against which banks and central banks' reported Balance of Payments/ Current Account claims van be tested. This will preclude future financial inaccuracies leading to major financial failures caused by inaccurate reporting. This is demonstrated simplistically in tables 5 and 6.

It will be appreciated that the embodiment described above is given by way of example only and is not intended to limit the scope of the invention. Modifications to the embodiment are possible without departing from the essence of the invention.