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The Bank for International Settlements (Bank for International Settlements, BIS) is the oldest international financial institution in the world, having been in operation since 1930. With its headquarters in Basel, Switzerland, the BIS assists central banks regarding the investment of cash reserves, provides a forum for international monetary cooperation, acting as agent or trustee in the execution of international loan agreements, and engages in extensive economic research. The BIS is involved in traditional types of investment. Any funds not needed as loans to other central banks are placed in global financial markets.

The main forms of investment include commercial bank deposits and purchases of negotiable commercial paper short-term treasury bills including the United States. International cooperation BIS provides a forum for the leaders of certain banks. The representatives of international institutions meet 10 times a year at the BIS to conduct discussions on the current monetary policy. The governors of central banks from Belgium, France, West Germany, Italy and the United Kingdom and five representatives of finance, industry or commerce, being appointed each by the rulers of the five central banks .

International organization, the BIS performs several functions as depository and a trustee. Environmental damage and international finance. Come together around the actions of a major international financial institution, the World Bank (World Bank). Also known under the name International Bank for Reconstruction and Development, the World Bank has been assisting the developing countries since its creation from the Bretton Woods agreement in 1944. Today, World Bank loans amount to a total of $ 24 billion per year. Despite several attempts aimed at incorporating environmental considerations into the policies of World Bank loans, it has een argued that this institution has contributed to environmental and social damage on a massive scale. Because of the financing of dams that have flooded agricultural land premium and ancient villages, and to finance the construction of roads within forests that have been stripped and that once provided access to miners and farmers, the bank has been accused of contributing to extensive destruction of the global environment. In some projects recently evaluated or even met their own goals and environmental performance of the bank. National governments to take on lending practices and / or business practices greener.

World bank The World Bank is one of the world’s largest organizations, linked with support for the development of peoples. Its primary focus is on helping people in the poorest countries. Founded: July 1, 1944 at a conference of 44 governments meeting in Bretton Woods, New Hampshire, USA. Headquarters: Washington, D. C. and more than 100 offices worldwide, including 17 in the Latin America and the Caribbean. President Paul Wolfowitz Membership: 184 countries WHO MANAGES THE WORLD BANK? The Bank operates as a cooperative where our members are shareholders.

The number of shares of a country is based on the size of its economy. The U. S. is the largest shareholder, followed by Japan, Germany, UK and France, the remaining shares are divided among the other members. The ultimate authority on DECISIONS Member countries are represented by a Board of Governors, consisting generally of ministers, including finance ministers and development or development. REUNION OF THE MILLENNIUM DECLARATION When they signed the Millennium Declaration at a meeting at the United Nations in 2000, most nations agreed to work together and reduce poverty by half by 2015.

The Millennium Development Goals are: • End extreme poverty and hunger. • Ensure that all children receive primary education. • Promote equal rights for women and give them the power they need to sustain their own. • Reduce infant mortality rate. • Improve the health of pregnant women and those who are already mothers. • Combat HIV / AIDS, malaria and other diseases. • Protect the environment and natural resources. • Create a global partnership for development. World Bank’s work It is a major source of resources and expertise to developing countries and its main objective: to help people and the poorest countries.

Evaluate the impact of projects supported is a key issue in developing countries because resources are scarce and should be used where they can have you better results. The World Bank has learned that solutions to development issues must be designed by the countries themselves to fit their specific circumstances and there are no recipes or unique solutions. It offers a combination of resources and expertise to promote economic and social development and help countries achieve the Millennium Development Goals agreed by the international community. The World Bank is composed of five organizations: International Bank for Reconstruction and Development (IBRD) • The International Development Association (IDA) • The International Finance Corporation (IFC) • The Multilateral Investment Guarantee Agency (MIGA) • The International Centre for Settlement of Investment Disputes (ICSID) • IBRD International Bank for Reconstruction and Development This organization provides loans and development assistance to middle-income countries in Latin America, Asia, Africa and Eastern Europe. The IBRD raises funds through the sale of bonds in international capital markets.

IDA International Development Association Rich countries make up the IDA, they give contributions, which then lending to the poorest countries, without interest. IFC-International Finance Corporation Promotes growth in the developing world by financing private sector investment and technical support and advice to governments and businesses. MIGA The Multilateral Investment Guarantee Responsible to convince foreign investors to invest in developing countries by providing guarantees against losses caused by noncommercial risks.

Also advises governments on how to attract private investment, and disseminates information on investment opportunities in developing countries. ICSID International Centre for Settlement of Investment Disputes Perform reconciliation procedures, and serves as arbitrator to resolve disputes between investors and host countries. THE WORLD BANK AND MEXICO Work and World Bank projects in Mexico are guided by the document Country Partnership Strategy, which is valid from 2004 to 2008. For its preparation, the Bank consulted with federal, state and municipal as well as civil society representatives.

With this partnership is to support the Mexican government’s efforts to combat poverty and inequality, and provides that in that four-year loans to the country total U. S. $ 4. 800 million. The Strategic Alliance has four pillars: • Reduce poverty and inequality • To help design, monitor and evaluate programs related to social protection and poverty, and increase the quality of education. • Improve equity and equality of opportunity, by focusing attention on groups that lack access to basic social services, such as health and pensions. • Expanding access to basic infrastructure, housing and land. Facilitate participation in decision-making and access to opportunities for women and indigenous groups. • Increase the competitiveness • Contribute to the implementation of policy reforms to improve competitiveness and mitigate the costs and adjustments provided in areas such as agriculture and through the analytic work with competitiveness. • Support the strengthening of financial markets, improving access to financial services and the expansion of opportunities to access private property. • Promoting good corporate governance and corporate social responsibility. To promote balanced regional development in all sectors of the population, to support government efforts to expand coverage, improve quality and reduce the costs of basic services and infrastructure, as well as market inequalities. • Supporting education is suitable for the development of skills and personal initiatives. By and • The improvement of the capabilities of the workforce, innovation and product quality. • Strengthening institutions • To contribute to democratic governance through greater dissemination of analytical work and knowledge sharing that makes the World Bank Group with all branches of government and civil society. Support the improvement of macroeconomic forecasts, determining the budget, tax reporting and tax administration, as well as training and accreditation of public officials in order to increase citizens’ trust in institutions, transparency and combating corruption. • Support policies implemented by the government federalism by strengthening the capacity of subnational governments and a more efficient judicial system that enables the poor to access and improve the performance justifies the commercial courts. Promoting Environmental Sustainability

Addressing the problem of water scarcity and high rates of deforestation and promote sustainable management of natural resources. Support the incorporation of the principles of sustainable development policies and programs. Support ongoing programs that address problems such as air pollution, disposal of solid waste and greenhouse gas emissions, as well as to promote clean energy technologies and implementation of environmental management at national and state levels . Conduct analytical work on environmental sustainability.

CO-WORLD BANK AND MEXICO Mexico is a member of the World Bank since 1947. In 1949 he received his first loan of 24 million dollars to build a power plant. Since then, the World Bank has granted loans to the country for a total of 36 billion dollars channeled to projects that have contributed to the development of its economy. INTER-AMERICAN DEVELOPMENT BANK BID Long-standing initiative for Latin America, the Inter-American Development Bank was established in 1959 as a development institution with novel mandates and tools for the time.

After long preparations for the Latin American countries. Its loan programs and technical cooperation projects in economic and social development were more than just funding, as was the custom then. The IDB’s programs and tools were models for the creation of other multilateral development institutions at regional and subregional levels. Currently, the IDB is the main source of multilateral financing for economic development projects, social and institutional programs, trade and regional integration in Latin America and the Caribbean.

The IDB is the oldest and largest regional development bank. WORLD TRADE ORGANIZATION WTO The World Trade Organization (WTO) is the only international organization dealing with the rules governing trade between countries. The pillars on which it rests are the WTO agreements that have been negotiated and signed by the vast majority of countries in world trade and ratified by their parliaments. The goal is to help producers of goods and services, exporters and importers conduct their business. CAPITAL MARKETS

International markets allow the development of economies, since these may produce different goods and place them in these markets to be acquired by those countries which can not be produced efficiently as a supplier of good country, and this in turn can benefit of other goods or services in which other countries have a better competitive advantage, although this kind of economic model is highly criticized for the lack of transparency in multilateral bodies in charge, have great benefits in all areas, which is why I favor globalization, when a country exports and makes their goods are in international markets, this can get benefits at the macroeconomic level, as companies can draw on it are benefits with efficient microeconomic policies, as they can generate employment, and therefore the government’s macroeconomic policies generate better redistribution of wealth among the population. “The IMF and World Bank became new missionary institutions, through which these ideas were recently imposed on poor countries which badly needed their loans and grants. Finance ministers from poor countries were ready, if necessary, to become in order to get money, although the vast majority of state officials and, more importantly, the people of those countries were often skeptical. “

Neoliberal policies, market opening, the smaller the state, among others, this shows a lack of inequality of these entities, in order to favor developing powers, but rather back to my approach, the importance of international markets not only is conditioned to this part, has also enabled the development of third world countries to unimaginable levels. International financial markets are divided into three branches are: 1 . – debt market: It’s called debt market because banks when customers deposit money they owe back to the client in the future (have a debt), the banking business is very simple, they get the money they give their clients (usually change an interest rate low enough truth) and instead invest it in assets that provide a greater interest, obtains benefits because of the differences between interest rates. 2 . Capital Markets: The market is known and where shares are traded the most important companies. 3 . – derivatives market: This type of market prices based on other assets (their prices are derived from other files). The main feature is to allow coverage of operations (eg hedge against exchange rate fluctuations) and high leverage (the investment required is much lower than the capital that we are speculating, for example: with an investment of EUR 1000, we be speculating on quantities of 10 times higher). THE GLOBALIZATION OF MARKETS FINANCIAL Currently, national economies are leaving to work as such and being internationalized, are becoming global economies.

This phenomenon comes a set of dependencies and solidarity between countries that exceeds mere economic relations. This internationalization of the economy due to the development of international investment and transnational corporations, which has produced the inevitable opening of national economies. Today we can not assess the economic policy of a State without regard to its international dimension. Internationalization is a complex phenomenon that requires the development of a heterogeneous view of the world economy and international economic relations not only between states also develop between groups of states, transnational groups, industrialists and financiers whose structure is in the field action of states and markets. Global Capital Markets 0 and December 11, 1998 conference held in Paris focused on the globalization of organized capital markets by the stock of Paris and New York, where the main topics of discussion were: • Privatization. • contracting and trading costs. • Technology as a reformer of the capital markets. • Opening and closing of markets. • Increase market capitalization. • European capital markets. PRIVATIZATION In recent years the relationship between the value of public companies and the gross domestic product has fallen from 9% to 6%, which corresponds to the privatizations that have taken place in industrialized countries. Since the release of markets and increase the efficiency of public enterprises, but the effectiveness of these measures is higher when accompanied by privatization.

Privatization makes companies more efficient, more profitable and increase their capital formation. With respect to privatization remain unresolved the problem of reducing jobs, although this usually occurs generally entails an improvement in employment outcomes as a result. • There are three techniques of privatization: • Sale of shares issued. • Sale of shares when the government needs immediate income from sales. • Issuance of certificates of privatization (Eastern Europe). • Some governments use privatization policy purposes, economic and • 100% in 5 years, although initial privatization is not hard to get positive returns. EQUITY TRADING & TRADING COST SISTEMS

A study conducted in Paris by Professor Thierry Foucault on the organization of top European shares, which highlights the introduction of new procurement systems for all or part of the securities. These new systems are compared to computer-driven markets which allows for contributors to liquidity. European markets are becoming more common characteristics, the most striking differences that persist existence of a different level of consolidation of orders and transparency of tariffs and negotiations. On the other hand there is another study about the various institutional transactions in the stock of the world conducted by the consulting firm of Elkins McSherry. In the New York Stock Exchange volume has doubled by increasing the amount of assets managed by institutions.

There is more volatility, but its only institutional commissions vary, institutional orders exceeds 20% of the daily average values. Why problems have increased in the negotiation and costs. TECHNOLOGY AS A REFORM OF CAPITAL MARKETS This topic involved the president of the Warsaw Stock Exchange, Instinet representatives (Broker e become institutional market with a market share of 5% in U. S. ) and the technical department of the Paris Bourse. Internet provides services in various stock markets in Europe where he performed the following services: market order to channel more efficient and cross institutional orders. The value of transactions in domestic markets is embodied as an application by the same amount.

The technical architecture of the Paris Bourse European networking permitted where the role of the Internet will be essential to bringing the retail investor the stock market. OPENING AND CLOSING OF MARKETS As for the opening of markets in the New York Stock Exchange An auction takes place in the formation of prices. Only specialists know all the orders reaching the market and are engaged in the stabilization of prices of opening stock inventory monitoring. Thus the opening price would be best if only in the auction were set by operators. This is because experts have private information as well as inventory control and forecasting of future prices.

Hillion and Suominen Teachers of the Paris Bourse studied the markets closed when the closing price calculated as of the last negotiation that takes place: In the cash market orders are married against limit orders that are outside the order book. Most purchase orders are you even when your return is negative and the close of trading large purchases are more frequent, causing greater impact. Besides descending order book liquidity and depth that makes prices more volatile, but also when there is more trading volume. Increase while limit orders that are more liquid from which the purchase at a price below the prevailing market and its volume is unknown. Modified in the Paris Bourse calculating closing prices becoming a five-minute preopening similar to, negotiating a single price.

They are buying and selling orders, maximizing of traded securities: FIXING: The profitability of prices will not be negotiated or correlation with the daily returns (as happens with the CAC 40). At the end FIXING will focus on cash 3. 6% of the day and the biggest operations of the session. Since the closing price is established by FIXING volatility has declined and the CAC will also be less volatile. The market has improved FIXING contributing to a better price formation, reducing volatility and also the mechanism gains in efficiency and speed to execute large orders. INCREASED MARKET CAPITALIZATION In the French stock exchange were two studies:

Capital cost increase and Global: attempts to show that globalization leads to reduction of capital taking place through two channels. One would reduce the cost of the discount rate for the investor and the other increasing globalization affect the cash flows received by the investor as well as control over the management and shareholders. Paper presented by Rene Stulz). The bags and corporate financing: we speak of the possibility of financing the company through equity, debt and bonds. In France it is usual convertible bond financing which is very attractive in financial crisis, it is not so common this type of financing in the U. S. , by the different structure of their companies. CAPITAL MARKETS EUROPE

Georges Ugeux director of the New York Stock Exchange, the Euro is very strong and can make a huge arrival of American institutions looking for funds to diversify funding and leveraging its economic stability. It is very important to the euro union of England and that is a key market among European capital markets. For Paul Arlman of the European Federation of Stock Exchanges, the European markets for the euro has great advantages but also a problem especially in terms of cooperation between competing entities with the same customers and products. ECONOMIC GLOBALIZATION FEEDS THE WAVE OF MERGERS The business world had not witnessed a fever of mergers from the wild 60’s and 80’s, when it became fashionable to form groups from dozens of smaller companies. But the difference is that today things have changed.

On the one hand, the boom is more widespread and the forces that generate it are different. It’s easy to find some of the causes of this fever. One is the power that the merged businesses when buying raw materials at cheaper prices. It also eliminates duplication of costs while increasing the amount of products you can send through its distribution network. But these factors have been present for some time. Today there are forces that are driving more companies to seek partners and change the nature of the association aimed at: • A strong stock market. • An environment relatively benign antitrust regulation. • A search for increasing profits by reducing costs and allocating market share at a time of low inflation.

The need to make strategic changes quickly in today’s competitive world, even if it means filing a hostile takeover. But above all, a global economy in which companies are realizing that they have to be bigger to compete, whether buying or allowing others to buy. The current bid for internationalization of the economy aims markets joining the search for greater competitiveness and strength of action which could have a single company in one market, which would result for higher yields and reduce costs. In our financial markets we have seen many mergers, most notably the merger of banks and BSCH Santander: “The seal Santander and BCH merger today. ” The merger will mean that the future BSCH is the third group by market capitalization in the euro area.

Just as in the international financial market are constant mergers of large number of companies seeking greater competitiveness in the transnational market, including: “Microsoft buys CompareNet to reinforce in electronic commerce”, “completed the merger of GTS and Esprit Telecom” . As shown by globalization is to achieve the expansion of capitalism by removing physical barriers and regulations that hamper global accumulation of capital. The increasing integration of the constituent parts of the world economy makes the control of States, which contributed decisively to the telecommunications revolution causing the notions of border and territory have become obsolete. The transnationalization of productive organization and widespread competition for control of markets and various resources. TIME OF MERGERS Mergers and Euro.

With our entry into the European and Monetary Union and adaptation to the single currency, we will make a major effort to integrate that in a global environment with new and increased competition. It will be necessary to carry out a strategic shift by financial institutions to adapt to current and future changes. A good company to be flexible and able to cope with changes in the circumstances you may encounter. You need to create and maintain competitive advantage in a global environment that expands the national to European level. To increase in size by the demands of the environment and its growth plans have taken place between a very common business mergers, alliances.

These procedures can also be used by companies with the intention to achieve economies of scale, internalizing the production process, improve its position in the market and rise above the competition. CAPITAL MARKET Although there are many meanings that may be, in essence they all have in common the element of mediation between the applicants and holders of funding them. In general, a capital market is a system which can meet the needs of companies (duly registered with the Securities and Exchange Commission, SEC), obtaining resources through unsecured bonds, commercial paper or opening up its capital through the issue of shares on the Stock Exchange.

Also, currently subsidizes investors with higher return rates as fixed income, and the possibility of high yields in the short and medium term in equities. In other words, can be defined as the point of concurrency of funds from savings and applicants who request them, in order for investment of short and medium term. Consequently, as market picks up a high proportion of savings of the community, to address industry and agriculture mainly. Along with the banking system, the Capital Market are the two alternative sources of financing for companies, which can be competitive substitutes or complementary. However, when the capital markets that finances businesses, establishing a containment element very particular phenomena within the monetary and financial markets, inflation and capital flight.

It is therefore responsible for allocating the resource or factor of production “capital” to the various economic activities, as assigned by the labor market work. The capital market is subdivided into securities market (also called features), which plays a well-organized capital market in an economy are those relating to: • The allocation of resources • The provision of venture capital • The requirements of long term business, and • The guarantee of liquidity The main beneficiaries of the capital market are brokers, companies, banks, investors and national economies. CAPITAL MARKET OBJECTIVES Primary capital market is to facilitate the placement of savings, capital market acts as the intermediary system where employers minimize their cost of capital.

In particular, the objectives can point to: The democratization of the tendency of capital, ie, provide the opportunity for small and medium savers access to participation in any company, thereby facilitating the disappearance of so-called family business. Getting more and more, a growing number of companies are incorporated in the tender offer, so that available on the market a diverse range of investment opportunities. Minority investor protection (small and medium). Creating new institutions to channel financial resources to investment society. And finally, promote economic development (by placing domestic savings into investment, and through it to grow production).

However, such goals do not materialize, requires inter alia that two essential conditions are present: • There is symmetry in the access information to which investors • That fund holders perceive that their yields are higher than other investment alternatives. • ROLE OF STOCK EXCHANGE IN THE CAPITAL MARKET “The stock exchanges are open to the public institutions that aim to provide all services necessary to perform continuously and orderly operations with securities, traded on the capital market, with the aim of providing adequate liquidity. ” As a regulated market, is where runners gather on a regular basis securities to purchase and sell government securities and / or private. Transactions carried out there are guaranteed legally and economically, and accept only securities of companies registered or admitted to trading.

These securities are initially offered directly by the issuer to the investor, because of which the activity undertaken by the stock exchange is called the secondary market. The most important functions of the bag can be listed as follows, in: Channeling of savings: the savings from taking it public to the private institutions that require it, when they issued fixed income securities (public funds and bonds). In this case, the stock market sets a price based on the profit or benefit obtained, as well as ensuring conversion of the share in cash if the holder provides, because it is a function of maximum settlements of investments, provided there is a diverse market, continuity and concentration of operations. Promoting investment: this is its main economic objective. Around it are eading companies that require capital, whose degrees are offered by it, making the saver becomes a partner and use of idle money in productive activities. Stimulate demand and supply of securities: securities offering high settlement, which to be recognized by the institution will be of interest to the public. On the supply side, your speed will depend on the intensity of liaison between primary and secondary markets. Also, the bags can create channels to channel financial resources as priorities for investment or productive. Create a continuous market, the price of the securities do not suffer very large variations in successive contributions, thereby increasing its liquidator.

Objectively inform and train-to determine indirectly through the value of the shares, the value of firms (the market value of these equals the product of the value of each share in the stock by the number of them are in circulation) . Also, as participants in relation to market conditions, data movement, risks that may arise for participants and settlement opportunities. Provides essential background information on companies listed on the stock, and report quickly and timely contributions from securities and prices at which transactions were made. Also fulfills a social function bag (the Capital Market), which is the democratization of capital. Public facilities provides for an orderly securities transactions. Finally, it has a legal role in regulating the activities of brokers.

Furthermore, because it continually sailing maintain the highest levels of fairness and moral integrity in business practices and securities which involve its members. The stock market plays an important role as an indicator of the economy. The Capital Market, with its swings, is often used as an indicator of the evolution of the economy is following. And if the object is to promote capital market development, the Stock Exchange provides companies access to capital needed to lower costs. Foreign Exchange Market The currency markets. Exchange rate is the price of one currency expressed in another. When a currency is in foreign hands is called currency. Foreign currency may need a country that plan to go on a tourist trip, because they want to import goods or services or who wish to invest in it.

In other words, because demand goods because demand services, or because they provide financial capital. Nationals offer their coins to exchange for the same reasons. If the price of a currency, its exchange rate is high, there is little demand. The tourists, realizing they have to give much money to get it decided to travel to another country, importers find the goods too expensive. If the exchange rate low, the currency will increase quantity demanded. That is, the currency demand function is decreasing and that of all goods. The supply of foreign exchange manifest equally logical behavior: when the exchange rate is high will be offered more of foreign exchange when low. Central banks intervene by manipulating exchange rates.

Any fluctuation in exchange rates is considered undesirable because it causes insecurity. That is why over long historical periods currencies markets have been operating in fixed exchange rate systems in which the central bank to keep rates involved. MARKET FOREX-Forex Trading-Advanced Currency Markets Welcome to Foreign Exchange, the most liquid financial market, dynamic and lucrative in the world: Its daily volume of 1. 5 trillion U. S. dollars makes it the most liquid market. In comparison, the estimated average trading volume for the largest stock exchange in the world, the New York Stock Exchange (NYSE) in an entire month is equal to the volume, daily, the market is trading at Fox

His running 24 hours a day and night makes the market more dynamic. Funding, the highest of all financial markets, the market makes it potentially more lucrative. In FOREX, an investor can fund 99,000 USD 1,000 USD for each margin that is deposited into your account, this deposit or margin can reach a daily movement potential between 100% and 200%. The operation in the market Forres is the simultaneous buying of one currency and selling another. Currencies are traded in pairs, for example Euro / Dollar or Dollar / Japanese Yen (JPY), Euro (EUR), British Pound (GBP) Swiss Franc (CHF), Canadian Dollar (CAD) and Australian Dollar (AUD). THE INTERNATIONAL MONETARY MARKET

The main complication is related to foreign currencies, but multinational corporations also face changes in interest rates and inflation rates in different countries, and manage the complex risks involved. Now, if there is a single currency for the whole world would not need the currency markets, but in today’s world in any international economic operation, handled at least one foreign currency. What is a currency market? Currency: All legal money or means of payment denominated in foreign currency, they can be converted or not. Convertibles: are exchanged for other currencies and the price is determined by the market. Forex Market: Is the market changing a country’s currency for another currency.

It is the place of confluence of supply and demand for means of payments denominated in different currencies and has been designed to facilitate the changes necessary to liquidate coins and non-financial transactions that a country makes to the outside. Exchange market: System through which you buy and sell different currencies. Buyers and sellers of foreign exchange market. The central banks of countries are the ones responsible for the control and management of reserves, and intervention in the system to domestic monetary policy: • Commercial banks are intermediaries of commercial agents when they demand or offer as a result of currency import and export operations or financial investments. non-commercial intermediaries are those who put in touch with suppliers and demanders (broker). Other participants: Importers: They need foreign exchange to pay for goods they import. Managing money: buy and sell stocks and foreign bonds. Multinational Companies: Investment in plant and sell goods in foreign markets. The foreign exchange market. Spot and forward. Direct quotation and indirect quotation on European and American terms, the cost of forex trading operation. The spot foreign exchange market, ie when only two business days mediate between the agreement and the consequent fixing of the exchange rate and delivery of currency at the price fixed in advance.

However, when between the agreement and the delivery can be between more than 2 days and 180 days, the parties fixing the exchange rate at the time of the agreement, the presence of a forward currency market. THE FOREIGN EXCHANGE MARKET GOODS: The first is the specific location of the place where they transact foreign exchange, stock exchanges, the Central Bank. In the common law, however, there is no specific site or place but work by mail and telephone system. Transfers and compensation are made via computer. The common law is actually imposed on a global level, which obviously contributed technological advances and increased international financial and economic integration.

However, in some countries as Spain, Belgium and other European establishing a fixing, market reference rate at a particular time of day that is obtained from the interaction between representatives of commercial banks and the central bank. The forex market is a market OTC (over-the-counter) was not organized. Operators are really agents at the offices of major commercial banks in the world that communicate with each other electronically, by telephone, telex and other information channels. They agree on quantities and prices and then confirm the transaction and its details and the operation is realized. The main square of the market is still London. Most banks are authorized in this foreign place. Specifically in 1991 of the 531 foreign banks were allowed 346, equivalent to 65% of the total.

The main operators and participants in the foreign exchange market have front office or expert (front offices), in which the contracting, monitoring of operations, the execution of customer orders and management positions risk. The so-called back office or administrative service complements the operating room, as it deals with confirmation of transactions, the accounting issue and receipt of payments collection control and monitoring of risk positions, brokers and brokers and Reuters Dealing system. The broadcast system comprises payments, telephone, mail, telex and SWIFT system. Most of the foreign exchange market operations are interbank character. So there are recruitment automated ordering through programs and marry the supply and demand.

Given the magnitude of the share of interbank foreign exchange market is possible to conclude that if this segment almost 85% “agrees” (agrees with expectations) that there is a currency that has depreciated in relation to another and begins to sell, to dispose of that, inevitably, will depreciate. If this is true, to some extent one may conclude that in the short term can produce a 85% market share. In the interbank market speculation is a zero sum game (the gains are offset by some losses of others), but the effect arising from the interventions of central banks. The interbank market can result in benefits or losses that correspond to the net profit or loss of central banks.

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