Answer to Question #291948 in Finance for Andrick Angel

Question

Who are the actors in the foreign exchange market? 10marks

Answer 1

(1) .Commercial banks; They are the center of foreign exchange market, every international transaction involve the debiting and crediting of commercial banks in various financial centers

(2). Corporations; firms with operation in several countries frequently make or receive payment in currencies other than that of country in which they are headquartered.

(3).Non bank financial institutions;These institutions offers their customers with range of services such as crediting and debiting their respective banks, this is because of deregulation of financial markets

(4). Central banks; They sometimes intervene in foreign exchange market to maintain the exchange rates of currencies within desired range.

(5). Foreign exchange brokers; They operate on local and international currency market , they act as agents who facilitate trading between local and international dealer's