Front

What is a spot exchange rate?

Back

A spot exchange rate is the rate at which two parties agree to exchange currency and execute the deal immediately.

Front

Forward Exchange Rate

Back

•Parties agree to exchange currencies at a predetermined price for future delivery.

Front

Participants in Foreign Exchange Markets

Back

•Exporters

•Importers

•Governments

•Multinational companies

•Tourists

•Commercial banks

•Central banks

•Speculators (Bull and bears)

Front

Factors driving Exchange Rates?

Back

1. 1. Interest Rates

2. 2.Inflation rates

3. 3. Economic Performance

5. 4.Speculations

6. 5.Government Intervention

7. 6.Political stability and Economic Confidence

Front

why are exchange rate important?

Back

1. 1. Impact on International Trade.

2. 2. FDI

3. 3.Inflation Control

4. 4.Economic Growth

5. 5.Balance of Payments

6. 6.Tourism

7. 7.Debt Repayments

8. 8.Income from Remittances

9. 9.Investor Confidence