Wednesday, July 29, 2009

NURSERY OF FOREIGN EXCHANGE MARKET

Everybody knows that life without money is very uncomfortable then I shared you some important information about foreign exchange and money. Because I am Zombi and the zombi is one the makers of money. The foreign exchange market (currency, forex, or FX) trades currencies. It lets banks and other institutions easily buy and sell currencies.
The purpose of the foreign exchange market is to help international trade and investment. A foreign exchange market helps businesses convert one currency to another. For example, it permits a U.S. business to import European goods and pay Euros, even though the business's income is in U.S. dollars.
In a typical foreign exchange transaction a party purchases a quantity of one currency by paying a quantity of another currency. The modern foreign exchange market started forming during the 1970s when countries gradually switched to floating exchange rates from the previous exchange rate regime, which remained fixed as per the Bretton Woods system. Oh! amazing information.

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