Waiting for answer This question has not been answered yet. You can hire a professional tutor to get the answer.
Write a 8 page essay on International Financial Markets Master.Download file to see previous pages... The development and the growth trend of the market is subdivided and depicted with the aid of grap
Write a 8 page essay on International Financial Markets Master.
Download file to see previous pages...The development and the growth trend of the market is subdivided and depicted with the aid of graphs and charts for analytical review. Obstacles hindering the smooth growth are also dealt with in the paper.
International Financial Markets collectively represents the total international trade and transaction in the foreign exchange market, international capital or foreign exchange basically refers to an over-the-counter (OTC) market, focusing on international currency trade. (Nature of foreign exchange, 2007) The whole scenario of international trade comprising of imports and exports and the flow of international capital is carried out through the Foreign exchange market. (Foreign Exchange in Economics, 2007) International exchange market being the largest global market place in regard to the monetary value traded, also includes international inter bank trading, exchange between central banks, multinational corporations and other international level speculators. The estimated average current global trade rate exceeds US$1.9 trillion/day. (Foreign Exchange Market, 2007)
The foreign exchange market is the place where trading of currencies takes place. The foreign exchange market proclaims to be the largest and most volatile market all over the globe. Under foreign exchange foreign currency is used for trading and the trade takes place between nations. Price list for the goods or services imported or exported items between countries etc., gets its cash value established from the foreign exchange trade. 'Bank drafts, bills of exchange, bankers' acceptances, and letters of credit' etc., could be exchanged at previously agreed rates for settlement of debts. This results in the accumulation of currency surplus, received by way of loan repayments, import-export trade guaranteeing etc., done by the foreign exchange market for its customers. (Foreign exchange in economics, 2007)
The foreign exchange operations are carried out by the Federal Reserve Bank of New York 'on behalf of the Federal Reserve System and the U.S. Treasury'. Thus being the authoritative party the Bank looks into the international financial market trends, maintains the U.S. foreign currency reserves, and participates in the foreign exchange market. (Role of Central Banks, 2007)
Growth of foreign exchange
The higher growth rate was achieved since 1971 with the closure of "gold window" (the practice of dollar exchange for gold at a predetermined rate) and the exchange rates were allowed to float depending upon the demand and supply principle. (Tim Schilling, 2007) Recent years witnessed a rapid increase in the foreign exchange volume. The estimates recorded a daily volume of over $2.
