monetary signs is the currency of a foreign state.
market where foreign exchange transactions are realized at the exchange rate referred to currency.
organized market, where to buy and sell currencies, called currency exchange.
Moscow Interbank Currency Exchange is the largest in Russia.
Belarusian Currency and Stock Exchange operates in Belarus.
What is the exchange rate?This exchange rate, which is set at the auction on the stock exchange.
Currency
It is bought and sold in the foreign exchange market can be in a bank account and used for international payments.
currency is freely convertible and nonconvertible part.
convertible recognized the possibility of the national exchange for foreign currency.Convertibility is:
- exterior - where the residents of the state can not buy or sell foreign currency;
- interior - where this possibility only applies to residents.
freely convertible - the currency for which there are no restrictions in the legislation to carry out any currency transactions for residents and non-residents.
partially convertible - is the currency of the states where there are any restrictions on its number or a special procedure, regulatory and permitting certain kinds of exchange operations for different subjects.
non-convertible currencies (closed) - the currency legislation of virtually all of which restricts the operation.
Foreign Exchange Market Foreign Exchange Market
consists of a large number of different financial institutions, including major banks, which are interconnected by modern means of communication for currency trading.
Thus, the foreign exchange market - it is not any particular place where sellers gather currency and its customers.Here dealers communicate with each other.Each computer quotations recorded on major currencies, traded banks.The Bank is free to buy or sell currencies on their own or on behalf of a client.
Since 1992, Russians have the right to open bank accounts in foreign currency.The exchange rate has been pegged to the dollar, and later the euro.
Currency trading is carried out exchange and OTC instruments.
Currency Exchange
exchange market - is organized by the currency market with a cheap currency with the most liquid applications, put up for auction.
The last chapter will examine what is the exchange rate.
Currency Liquidity is its ability to be converted into cash quickly and without loss.
Compared with OTC, the stock market has a number of advantages.It:
1. Equality of subjects who buy and sell currencies through intermediary banks.Applications, regardless of the amount held on the same course.
2. The benchmark for public courses are unofficial exchange rates.
3. Foreign exchange interventions, as well as other ways of regulation of exchange rates on the exchange, are more accessible and less costly than in the international currency market.The Central Bank may intervene here in the bidding for the course management in times of crisis.Such impact on the stock exchange rates in Russia, Russians observed in the current period of instability.
4. Technical and legal standards in the conduct of foreign exchange operations.
5. Transparency and the opportunity thus entering into transactions at the best quote.
6. Currency risks are minimized, and the settlement of transactions guaranteed.
Moscow Interbank Currency Exchange (MICEX)
large currency exchange in Russia is MICEX.
Moscow stock exchange - a market that is licensed by the Central Bank of the Russian Federation, which allows to organize the sale and purchase of currency for rubles, and perform calculations on the transaction.
The main objective of the exchange is to create the necessary conditions for the interbank foreign exchange market.
Trades are conducted every day except Saturday and Sunday.Operations are carried out through dealers who can not spend their own and at their own expense.
carry trades and determines the current course is specifically authorized for this purpose the employee MICEX - exchange broker.
In the hall where the exchange trades take place, there can be only employees of the MICEX and dealers, as well as the organization and the participants in the bidding.
Press and other organizations may be allowed into the hall only with permission of the management of the exchange.
Belarusian Currency and Stock Exchange (BCSE)
BCSE - was created in 1998 but started to work almost since 1993.The controlling stake in the stock exchange belong to the National Bank of Belarus, which is a major player in regulating the exchange rate of the currency in Belarus through daily interventions.
After trading day seen the ratio of demand and supply for currencies, above which the National Bank buys or sells currency at its discretion.For the same indicators formed the ruble in Belarus.
What is the exchange rate
exchange rate - is the price of a unit of money in one country, which is expressed in units of money to other countries.It is set in relation to demand and supply of foreign currency.
However, for professionals engaged in the exchange of currency exchange rate, there is no orientation to the concept of the exchange rate.For them matter two courses on which it actually breaks.This course is the seller and the buyer.
quotation - the rate recorded in the national unity of money in foreign currency.
What is the exchange rate?This exchange rate, which is set at the auction on the stock exchange.
All currency transactions carried out on the stock exchange, based on the convertibility of the currency to be exchanged.Informal exchange currency rates directly depend on the customers how much they are willing to sell a currency exchange.And this ability is determined based on the economic situation in the country of issue.
