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A forex market is a market that facilitates exchange of currencies. The world is emerging as aglobal economy because of flow of goods, services and capital. For each transaction of goodsand services there is a corresponding currency transaction, which forms a part of an internationalnetwork of payments. The increase in world trade and the lowering of capital controls have led totremendous growth in the foreign exchange market over the years. It offers unparalleled personal
and financial freedom to make money as well as lose it in no time. It is described as the „fairestmarket on earth‟ for it is so large that no one player, not even large government can completely
control its directions.The Indian forex market is in its evolving stage, the market is described as thin with few playersand low volumes unlike the global scenario. The main reason for low volumes is the nonconvertibility of rupee on capital account. This research report will give insight about theevolution of the Indian forex market and the importance of forex market in a developingeconomy like India .
Statement of Need
The foreign exchange market has gained a lot of importance in recent years and has become anessential part of every economy, but there are very few developed foreign exchange marketstoday. London is the forex capital of the world today and others are mostly centered aroundorganized markets like New York, Tokyo, Zurich, Honk Kong, Singapore etc.India being one of the fastest growing economies of the world and its ambition to become adeveloped economy by 2020, it needs a developed forex market to back its economy. Thisresearch report will help us understand the existing scenario of the Indian forex market and whatchanges will help it to become a developed forex market.