The foreign exchange market is the market in whichcurrencies are bought and sold against each other.
The interbank foreign exchange market is an over-the-counter (OTC) market. Daily turnover about $1.5trillion. Average transaction is about USD 4 million
The participants in the wholesale market arecommercial banks, investment institutions,corporations and central banks
Currency brokers actas middlemen between dealers
A small number of currencies account for bulk of turnover:
USD, GBP, EUR, CHF, CAD, JPY, DEM,AUD