foreign exchange

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Foreign exchange

Currency of another country. Abbreviated Forex.

Foreign Exchange Market

A market for the trading of currencies. For example, one may buy dollars or sell pounds on a forex market. Foreign exchange is one the largest and most liquid markets in the world. Trading occurs over-the-counter, and most of the major players are governments, banks, and speculators. Forex markets are often used in hedging strategies.

Foreign exchange (FOREX).

Any type of financial instrument that is used to make payments between countries is considered foreign exchange. The list of instruments includes electronic transactions, paper currency, checks, and signed, written orders called bills of exchange.

Large-scale currency trading, with minimums of $1 million, is also considered foreign exchange and can be handled as spot price transactions, forward contract transactions, or swap contracts.

Spot transactions close at the market price within two days, and the others are set to close at an agreed-upon price and an agreed-upon date in the future.

foreign exchange


foreign exchange

References in periodicals archive ?
TheCityUK's estimates, based on individual surveys of foreign exchange activity released this week by central banks in the UK, US, Japan, Australia, Canada and Singapore show that the UK's share was well ahead of the next three largest trading centers - US (15 percent), Singapore (7 percent) and Japan (6 percent) - with London accounting for the bulk of the UK's daily turnover, averaging $2,481 billion.
To ensure that transactions with foreign exchange dealers, money changers and remittance agents are sound as well as in line with risk management policies and practices, the BSP ordered banks to:
dollars of foreign exchange reserves by the end of March this year.
Middle Eastern investors are rapidly discovering the benefits of online foreign exchange trading and we expect to see significant growth this year in the region," says Hardiman.
While nobody can instantly establish law and order throughout Russia, the IMF can - and should - insist that it be established in foreign exchange markets.
Japanese Finance Minister Matsunaga confirmed the intervention, announcing that Japan had taken "decisive action" in the foreign exchange market.
Usable foreign exchange holdings exclude foreign exchange holdings deposited in overseas branches of financial institutions from the total foreign exchange reserves.
and foreign multinational corporations are taking a proactive stance in managing their foreign exchange exposure.
Participation in international markets may result in a foreign exchange risk known as transaction exposure.
ISLAMABAD -- State Bank of Pakistan's (SBP) powers to regulate the foreign exchange business have been strengthened through enactment of the Foreign Exchange (Amendment) Act, 2016.
Macedonia's foreign exchange reserves noted an increase of 16 million euros in July, currently stand at little over 2 billion euros, said the National Bank of Macedonia in its latest report on the country's foreign exchange reserves.

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