lorelgn Lxchange MarkeL

lorelgn Lxchange MarkeL

W lL ls a markeL for currencles of varlous
counLrles Lo be boughL and sold
W lL ls a markeL ln whlch domesLlc moneLary
unlLs or clalms are exchanged for forelgn
moneLary unlLs
eLall and wholesale segmenL of forex
markeL
W ln Lhe reLall segmenL Lhe exchange of bank
noLes bank drafLs currency and Lraveller's
cheques Lakes place beLween Lhe prlvaLe
cusLomers LourlsLs and Lhe banks
W ln Lhe wholesale segmenL Lhe banks Lrade ln
currencles whlch does noL lnvolve physlcal
Lransfer of currency buL only a bookkeeplng
enLrles among banks
@ypes of lorelgn Lxchange
LransacLlons
W SpoL LransacLlons when Lhe LransacLlon ls
made for lmmedlaLe dellvery
W lorward LransacLlons LransacLlon Lakes place
Loday aL a prlce for Lhe dellvery ln fuLure
W lorelgn exchange LransacLlons are merchanL
LransacLlon and lnLerbank LransacLlon
Lxchange raLe
W @he exchange raLe can be (l)flxed (ll)floaLlng
or (lll)managed
W lL ls Lhe raLe aL whlch one currency ls
converLed lnLo anoLher
W ulrecL raLe when Lhe value of forelgn currency
ls expressed ln domesLlc currency
W lndlrecL raLe when Lhe value of domesLlc
currency ls expressed ln forelgn currency
Lxchange conLrol
W lL(1947)
W lLM(1999)
lLM1999
W Lmphasls has moved from 'regulaLlon' Lo
'managemenL'
W elaxaLlon of forelgn exchange conLrols
W Move Lowards caplLal accounL converLlblllLy
W l's lnLervenLlon has reduced