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the Foreign Exchange Market
FOREX Market Participants
Banks Interbank market provides commercial turnover and huge amounts of speculative trading on a daily basis.
Before large FOREX broker facilitate interbank trading and matching for a fee.
hey play an important role by keeping inflation low and steady by controlling money supply.
These are brokers that handle retail trades.
Companies engaged in international trade they use currency market as a means of protecting themselves from unfavorable moves in the market.
the interbank or wholesale market
usually involve large sums
the client or retail market
usually for specific amounts, sometimes down to the last penny
Functions of foreign Exchange Market
Transfer of Purchasing Power
Provision of credit
Provision of Heding Facilities
Methods of Affecting International Payments
There are important methods to effect international payments.
Money may be transferred from a bank in one country to a bank in another
Cheques and Bank Drafts
International payments may be made be means of cheques and bank drafts.
Transactions in the foreign Exchange Market