Foreign exchange markets: Basics
Saturday August 15th 2009, 6:43 pm
Filed under: foreign bond funds
Foreign exchange markets: Basics

An exchange transaction is a transaction that allows movement between liquidity of bank deposits denominated in different currencies.The latest indicators of the Bank for International Settlements (BIS) show that on average a 24-hour day, nearly $ 1mille billion changing hands on the foreign exchange markets.

It is surprising that only 15% of changes are related to cross-border trade of goods and services. Nearly 85% are banking (more…)