Foreign Exchange Market in India
| Foreign Exchange Market | Its Functions And Structure | | | |
The term market has been interpreted in Economics as the place where both the buyers as well as the sellers meet and they buy and or sell goods. The foreign exchange market is a place where the transactions in foreign exchange are conducted. In practical world the external transaction requires the use of foreign purchasing power i.e. foreign currency. The foreign exchange market facilitates such transactions by performing number of functions. |
INTRODUCTION
Foreign Exchange Market
A Foreign exchange market is a market in which currencies are bought and sold. It is to be distinguished from a financial market where currencies are borrowed and lend.
The daily turnover of the Global Foreign exchange market is presently estimated at US$ 3 trillion. Presently the Indian Foreign exchange market is the 16th largest Foreign exchange market in the world in terms of daily turnover as the BIS Triennial Survey report. As per this report the daily turnover of the Indian Foreign exchange market is US$ 34 billion in the year 2007. Besides the OTC derivative segment of the Indian Foreign exchange market has also increased significantly since its commencement in the year 2007. During the year 2007-08 the daily turnover of the derivative segment in the Indian Foreign exchange market stands at US$ 48 billion.
The growth of the Indian Foreign exchange market owes to the tremendous growth of the Indian economy in the last few years. Today India holds a significant position in the Global economic scenario and it is considered to be one of the emerging economies in the World. The steady growth of the Indian economy and diversification of the industrial sectors in India has contributed significantly to the rapid growth of the Indian Foreign exchange market. Let us take a watch on the Indian Foreign exchange trading scenario since the early days.
During 2003-04 the average monthly turnover in the
The term market has been interpreted in Economics as the place where both the buyers as well as the sellers meet and they buy and or sell goods. The foreign exchange market is a place where the transactions in foreign exchange are conducted. In practical world the external transaction requires the use of foreign purchasing power i.e. foreign currency. The foreign exchange market facilitates such transactions by performing number of functions. |
INTRODUCTION
Foreign Exchange Market
A Foreign exchange market is a market in which currencies are bought and sold. It is to be distinguished from a financial market where currencies are borrowed and lend.
The daily turnover of the Global Foreign exchange market is presently estimated at US$ 3 trillion. Presently the Indian Foreign exchange market is the 16th largest Foreign exchange market in the world in terms of daily turnover as the BIS Triennial Survey report. As per this report the daily turnover of the Indian Foreign exchange market is US$ 34 billion in the year 2007. Besides the OTC derivative segment of the Indian Foreign exchange market has also increased significantly since its commencement in the year 2007. During the year 2007-08 the daily turnover of the derivative segment in the Indian Foreign exchange market stands at US$ 48 billion.
The growth of the Indian Foreign exchange market owes to the tremendous growth of the Indian economy in the last few years. Today India holds a significant position in the Global economic scenario and it is considered to be one of the emerging economies in the World. The steady growth of the Indian economy and diversification of the industrial sectors in India has contributed significantly to the rapid growth of the Indian Foreign exchange market. Let us take a watch on the Indian Foreign exchange trading scenario since the early days.
During 2003-04 the average monthly turnover in the
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