Foreign Exchange Markets and Foreign Exchange Rates

Peijie Wang ()
Additional contact information
Peijie Wang: University of Hull, Business School

Chapter 1 in The Economics of Foreign Exchange and Global Finance, 2009, pp 1-15 from Springer

Abstract: A foreign exchange market is a market where a convertible currency is exchanged for another convertible currency or other convertible currencies. In the transaction or execution of conversion, one currency is considered domestic and the other is regarded as foreign, from a certain geographical or sovereign point of view, so is the term foreign exchange derived. Foreign exchange markets are not reserved for traders or finance professionals only but for almost everyone, from multinational corporations operating in several countries to tourists travelling across two currency zones. As long as national states or blocs of national states that adopt their own currencies exist, foreign exchange markets will persist to serve business, nonbusiness, and sometimes, political needs of business firms, governments, individuals, and international organizations and institutions.

Keywords: Exchange Rate; Foreign Exchange; Foreign Exchange Market; Arbitrage Opportunity; Real Effective Exchange Rate (search for similar items in EconPapers)
Date: 2009
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-3-642-00100-0_1

Ordering information: This item can be ordered from
http://www.springer.com/9783642001000

DOI: 10.1007/978-3-642-00100-0_1

Access Statistics for this chapter

More chapters in Springer Books from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().