International Trade and investment create need for buying , selling borrowing and lending foreign currencies. Sometimes, International Trade transactions do not result in the sale or purchase of foreign currency because companies set off foreign currency receipts against foreign exchange payments. To understand International Business Operations, It is important to understand the technology, operations and mechanisms of foreign exchange markets .
Foreign exchange is called forex, where one currency is exchanged or traded for another currency. Forex markets are also called foreign currency or just currency markets. There are domestic and international foreign currency markets .Domestic foreign currency markets serve the foreign currency like buying, selling, borrowing and lending needs of residents where as international markets serve non-residents also.
Unlike other markets, Forex markets have no physical location or central exchanges and operate through an electronic network of banks and corporations. It is for this reason that Forex markets operate on a 24-hour basis, spanning from one zone to another across major financial centers. It is for this reason that constant monitoring across time zones are required so as to negate adverse movements or book extra-ordinary profits.
The global foreign exchange market has established three principle dealing centres, each operating with a specific time zone : London, New York and Tokyo. London is the main forex market centre.
The major participant in forex are commercial banks which acts as a clearing house between users and earners of foreign exchange. The banks also deals with the foreign exchange brokers. The investors, exporters and tourists also participate in the market.
Emerging and growing
The financial landscape has changed forever. There are now new rules of the game. Change is the only constant. Technology has made the effects of change manifest quicker.
Forex business seeks new and better ways to address the challenges and opportunities in this new market economy. At the centre of all activities is the client around whom the full market revolves, the companies constantly innovate and refine wealth management practice to create a better product and service. Nowadays we find forex market is more Professional, the money changer with their ability builds long term relationships with their client and understand their problems and provides a unique solution which adds to their business objectives.
As India, steps out post liberalization by plugging into the global economy many Indian corporate entities are thinking globally. There is no reason why Indian investors in India and abroad be left behind and not taking advantage of this new investment climate. Ability to see the bigger picture enables various Investment Company do guide investors, for their investments. They actively meet various industry leaders to understand their vision, thinking, and long term plans. Also they find new regulatory environment that offers greater transparency and innovation. This companies draw rich experience and expertise to advise clients so they are either able to take advantage of the opportunities or weather the adverse business environments