logging in or signing up foreign exchange- sunitaminz Download Post to : URL : Related Presentations : Share Add to Flag Embed Email Send to Blogs and Networks Add to Channel Uploaded from authorPOINT lite Insert YouTube videos in PowerPont slides with aS Desktop Copy embed code: Embed: Flash iPad Copy Does not support media & animations WordPress Embed Customize Embed URL: Copy Thumbnail: Copy The presentation is successfully added In Your Favorites. Views: 91 Category: Education License: All Rights Reserved Like it (0) Dislike it (0) Added: August 20, 2012 This Presentation is Public Favorites: 0 Presentation Description No description available. Comments Posting comment... Premium member Presentation Transcript Foreign Exchange: Foreign Exchange Foreign exchange is the system or process of converting one national currency into another, and of transferring money from one country to anotherForeign Exchange Market: Foreign Exchange Market The foreign exchange market is a market in which foreign exchange transactions take placeFunctions of foreign exchange market: Functions of foreign exchange market Transfer of purchasing power Provision of credit Provision of Hedging facilitiesTransactions in the foreign exchange markets: Transactions in the foreign exchange markets Spot and forward exchanges Swap operations arbitrageParticipants in foreign exchange markets: Participants in foreign exchange markets Traders- commercial banks Brokers- brokerages firms Speculators- long position and short position Hedgers Arbitrageurs governmentsDetermination of exchange rates: Determination of exchange rates Purchasing power parity (PPP)- Gustav Cassel Balance of payment theory-Demand and supply theoryExchange Rate Systems: Exchange Rate Systems Fixed exchange rates Flexible exchange ratesConvertibility of the Rupee: Convertibility of the Rupee Free convertible- Partial convertibility -1992-93 in current account LERMS- Market rate and Official rateWhy partial convertibility? : Why partial convertibility? 1. to make foreign exchange available at a low price for essential prices. At times of large deficit in current account- it is risky to go for full convertibility To bring in a stability in rupee valueMerits of convertibility: Merits of convertibility Real value of rupee It encourages exports Encourages import substitutions Attracts remittances by NRIsEurocurrency market: Eurocurrency market The money market in which Eurocurrency, currency held in banks outside of the country where it is legal tender, is borrowed and lent . You do not have the permission to view this presentation. In order to view it, please contact the author of the presentation.