foreign exchange markets
foreign exchange markets can be classified in a number of ways:
in the field of dissemination, in relation to currency restrictions, by type of foreign currency exchange rates, the degree of organization, types of currency markets are divided into:
1) in the field of dissemination of international foreign exchange UK covers the foreign exchange markets of all countries of the world. Under the international currency market refers to a chain of closely interconnected system of cable and satellite communications of the world's regional foreign exchange markets. Between them there is a transfer of funds, depending on current information and forecasts of the leading market participants concerning possible of the situation of individual currencies. The domestic foreign exchange market is the currency market of one state, i.e. the market, functioning within the country.
2) in relation to currency restrictions can provide free and non-free foreign exchange markets. The foreign exchange market with foreign exchange constraints is called free market, and in their absence - free currency market.
3) by kinds of the applied exchange rate:
The market in one mode, - the foreign exchange markets with free currency exchange rates, i.e. with floating exchange rates, whose quotation is installed on the exchange trades.
The foreign exchange market with a double regime is a foreign exchange markets with the simultaneous use of fixed and floating exchange rate. Introduction of a dual exchange market is used by the state as a measure of regulation of the movement of capital between the national and the international market of loan capital. This measure is intended to restrict and control the impact of the international market of loan capital to the economy of the state.
4) the degree of organization:
The foreign exchange market is an organized market, which is represented by currency exchange. Currency exchange is an enterprise, organization of trades in currency and securities in foreign currency. The exchange is not a commercial enterprise. Its main function is not to gain a high profit, and in the mobilization of temporarily free cash through the sale of currency and securities in foreign currency and in establishing the exchange rate, i.e. the market value.
The foreign exchange market has a number of advantages: it is the cheapest source of currency and foreign exchange funds; orders issued to the exchange trades, have absolute liquidity.
Over-the-counter foreign exchange markets is organized by the dealers, who may or may not be members of currency exchange and lead him on the phone, Fax, computer networks.
5) in the classification of foreign exchange markets should allocate the eurocurrency markets, Eurobonds, åâðîäåïîçèòîâ, åâðîêðåäèòîâ, as well as “black” and “grey” markets.
Market eurocurrency is the foreign exchange market of the countries of Western Europe, where transactions are made in the currencies of these countries. The functioning of the market eurocurrency connected with use of currency in non-cash Deposit and lending operations outside the countries-issuers of the currency.
The Eurobond market expresses its financial relations on debt obligations as long-term borrowing in åâðîâàëþòàõ, arranged in the form of bonds borrowers. The bond contains data about the amount of debt, conditions and terms of the repayment, the order of receipt of interest in accordance with the coupons.
Market Euro deposits expresses its strong financial relations on the formation of deposits in the currency in commercial banks of foreign States at the expense of funds circulating in the eurocurrency market.
Market Euro loans expresses sustainable lending communications and financial relationships for the provision of international loans in Euro commercial banks of foreign States.
foreign exchange markets is a sphere of relations concerning the purchase and sale of goods and foreign currencies of different countries and market entities, whether in the various States. The residents have the right to buy and sell foreign currency in the domestic foreign exchange market of Russia only through the authorized banks.
Currency sale and purchase transactions may be effected directly between the authorized banks, as well as through the currency exchange. Settlements in foreign currency and maintenance of international trade is conducted with the help of inter-Bank transactions. Specific features of banking operations in foreign currency determines a special order of licensing of this activity.
