International Financial Market
Essay Preview: International Financial Market
Report this essay
International Financial Market:
The International Financial Markets are financial markets where individuals buy and sell foreign assets such as stock, Bonds, currencies etc.
The International Financial Market is the place where financial wealth is traded between individuals (and between countries).
Types of international financial markets:
The financial market comprises the markets such as:
Stock market
Bond market
Currency market
Derivatives market
Commodity market and
Money market
The institutions which work in them with different aims and functions are
Central Bank
Ministry of Economy and Finance, and;
Direct/indirect policies orientated to making the market the place (not necessarily a physical place and not necessarily ruled but regulated) where the exchange between surplus and deficit units is carried out as efficiently as possible.
Foreign Market and Forex:
Foreign market is the part of a nations internal market, representing the mechanisms for issuing and trading securities of entities domiciled outside that nation.
Foreign markets can be categorized into developed and emerging markets. Industrialized nations, such as the United States, Germany and Japan, represent mature markets, with relatively stable political regimes and commercial environments.
The foreign exchange markets would be an example of a foreign financial market.
The foreign exchange market (forex, FX, or currency market) is a form of exchange for the global decentralized trading of international currencies. EBS and Reuters dealing 3000 are two main interbank FX trading platforms. The foreign exchange market determines the relative values of different currencies.
The foreign exchange market assists international trade and investment by enabling currency conversion. For example, it permits a business in the pakistan to import goods from the European Union member states especially Eurozone members and pay Euros, even though its income is in Pakistani rupees.