primarily refers to the conversion of one currency into another. Foreign exchange can be freely floating i.e. flexible or fixed or managed float. In an economy the resides in the absence of any restrictions foreign exchange is determined purely by the laws and dynamics of demand and supply of that specific currency. There are a variety of factors that can influence the demand and supply of any specific currency that is traded in the foreign exchange markets.
basically refers to the platform where the foreign currencies are dealt in. A currency when pegged or fixed against another currency or a particular any valuable commodity like gold is considered to be fixed foreign exchange market. An economy may have foreign exchange market where the government intervenes once in a while and the currency exchange rate is determined in a secured environment and it does not completely depend upon the supply and demand of the currency. Foreign exchange market is considered to be the one of the most dynamic and liquid market of the world. It is the largest existing, highly volatile market.Foreign trade and investment today cannot exist without the mechanism of foreign exchange in place in the world. Foreign exchange is handled between banks globally and all the transactions that take place fall under the purview of Bank of international settlements or BIS.
24 May 2019 03:19 PM
1. Foreign exchange as the term says is an exchange of foreign currency. Exchange of one country’s currency against another country’s is done in the foreign exchange or forex market.
23 May 2019 12:04 PM
Foreign exchange depends on the value of the currency. And, as far as the valuation of currency is concerned, it again depends on a number of factors such as - trade, investment, tourism, and geopolitical risk. The foreign exchange market also repres
21 May 2019 05:13 PM
A letter of credit provides an irrevocable guarantee to the seller that provided the goods and/or services are delivered to the buyer according to contractual terms and with the required documents, it will be paid by the bank that issued letter of cr
16 May 2019 04:27 PM
Managing forex money is important to increase profits and reduces losses which can arise if not monitored. In the highly fluctuating forex market, the movement of one currency against the other creates opportunities.
15 May 2019 12:50 PM
Trade financing could be made directly to the supplier, to enable him to procure items to produce, or for immediate sale, and/or for storage for future activities.
10 May 2019 05:31 PM
Trade finance services are provided to an importer to avail a short term funding against the goods or services that they want to avail from an overseas supplier. There are different means of achieving this service.