Understanding the Foreign Exchange Markets

This Book is on foreign exchange market. Foreign exchange refers to money denominated in the currency of another nation or group of nations. Any person who exchanges money denominated in his own nation s currency for money denominated in another nation s currency acquires foreign exchange. Foreign exchange market is a place where foreign exchanges are traded i.e. one currency is exchanged for another. Foreign Exchange market is the largest financial market in the world. From 1997 to the end of 2000, daily trading volume from Forex trading has surged from 5 billion to 1.5 trillion dollars. Now, daily turnover of over $3.2 trillion. The two main conclusions are as follows. First, the Euro is likely to become a major currency in the world. It may even challenge the dollar as the other major international currency, creating significant welfare gains. Second, during the transition to becoming a (or the) major international currency, the Euro is likely to appreciate.

Autorentext

Dr. Pawan Kumar Avadhanam, Asst. Professor (Finance), Institute of Public Enterprise,Osmania Unversity,Hyderabad,India. Mr. Prashant is working with State Bank of India, Mumbai,India. Jayaditya Korada is currently working for Deloitte as an Analyst. He has done his MBA(Finance)from Institute of Public Enterprise, Osmania Unversity,Hyderabad,India.

Klappentext

This Book is on foreign exchange market." Foreign exchange" refers to money denominated in the currency of another nation or group of nations. Any person who exchanges money denominated in his own nation's currency for money denominated in another nation's currency acquires foreign exchange. Foreign exchange market is a place where foreign exchanges are traded i.e. one currency is exchanged for another. Foreign Exchange market is the largest financial market in the world. From 1997 to the end of 2000, daily trading volume from Forex trading has surged from 5 billion to 1.5 trillion dollars. Now, daily turnover of over $3.2 trillion. The two main conclusions are as follows. First, the Euro is likely to become a major currency in the world. It may even challenge the dollar as the other major international currency, creating significant welfare gains. Second, during the transition to becoming a (or the) major international currency, the Euro is likely to appreciate.