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Global FX Scandal

The thought for this post was triggered by the Foreign Exchange Committee sponsored by the Federal Reserve Bank of New York. The Committee has recently observed in its 2014 March 26th meeting that order handling, hedging, disclosure policies...

Foreign Exchange Exposures

Foreign Exchange exposure is a measure of the potential for a firm’s profitability, net cash flow and market value to change because of a change in exchange rates. An important task of the financial manager is to measure foreign exchange exposure...

Foreign Exchange Risk Management

The peculiarities of foreign exchange markets are –          An Over The Counter market –          Only market open 24 hours, seven days a week, 365 days a year –          No single location; no barriers –         ...

FX Forward Contracts

Forward Contract is a mechanism through which the rate is fixed in advance for purchase or sale of foreign currency at a future date. In such an arrangement, the risk of loss which might accrue on account of adverse movement in the rate of exchange...

Foreign Exchange Dealing Operations

If you buy a Binny Silk Saree for your wife (or girl friend!) at T.Nagar Chennai Nalli Silks, you will naturally want to pay for it with Indian Rupees and the Nalli Silks will want to be paid in Rupees because he pays all his bills with Rupees. Likewise,...

Basic concepts in Foreign Exchange

Meaning: The term foreign exchange is popularly referred to as the currencies of other countries. To an Indian, US Dollar is a foreign currency just as Indian Rupee to an American. Mr X, an Indian, receives a remittance of (say) USD 1000 from...

Current trends in FX markets

FX Markets are the backbone of international financial markets. An insight into the current trends in global FX markets reveals an interesting reading as under: Markets Global FX turnover ($4.2 Trillion daily) gone up by over 25% over April...

Fundamentals and basic instincts drive FX Markets

Bank for International Settlements, Basel, Switzerland conducts triennial central bank survey on foreign exchange and derivatives market activity. The last such survey was conducted in April 2010. As per the findings of this survey, Global Foreign...

Foreign Exchange Markets (ppt)

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Differentiators in FX Business

The foreign exchange market is the largest and most liquid sector of the global financial system. Bank for International Settlements’ Triennial Central Bank Survey of Foreign Exchange and Derivatives Market Activity 2004, estimated foreign...