Slide 2:
Foreign Exchange Market Currency Convertibility International Monetary System Balance of Payments International Financial Markets
Foreign Exchange Market:
Foreign Exchange Market Place where different currencies are bought and sold Over the counter exchange Exchange happens over the internet It provides for hedging facilities
Currency Convertibility:
Currency Convertibility Assumptions; currencies are easily convertible Freely convertible when unlimited imports and exports are allowed Countries follow non-convertibility to preserve their forex reserves
International Monetary System:
International Monetary System Facilitates trade and investment In India it’s the RBI Internationally IMF and world bank takes care of the international monetary system
Balance of Payments:
Balance of Payments BOP data important for IMF managers Country with huge deficit would reduce imports and vice versa
International Financial Markets:
International Financial Markets The major markets are: - International Banks, Eurocurrency, Eurobond markets, International stock markets Benefits borrowers and investors Funds available at low cost Wider range of investment opportunities for investors Deregulation by Govt. has paved way for capital movement
Slide 8:
Thank You