The Foreign Exchange Market

The foreign exchange market (forex, FX, or currency market) is a global decentralized market for the trading of currencies. The main participants in this market are the larger international banks. Financial centres around the world function as anchors of trading between a wide range of multiple types of buyers and sellers around the clock, with the exception of weekends. The foreign exchange market determines the relative values of different currencies.

Foreign Exchange: A Banking perspective

Risks

Net Open Positions

Maturity Gaps

Customer Creditworthiness and Delivery Capabilities

Economic and Political Considerations

Policy

Reports

Revaluation and Accounting Systems

Departmental Organization and Control

Supervision of Branches and Subsidiaries

The Market

Arbitrage