What is Foreign Exchange Rate?
The foreign exchange rate is the relative price of one currency in terms of another. In the context of floating exchange rates, these prices should...
The foreign exchange rate is the relative price of one currency in terms of another. In the context of floating exchange rates, these prices should...
Balance of trade (BOT) : BOT is described as the difference between the vale of merchandise (goods) exports and the value of merchandise imports. It...
The Balance of payments of a country is a systematic account, in the form of summarized record, of all economic transactions between residents of a...
The term LORO is used when the NOSTRO / VOSTRO account is referred to, by a bank other than the account maintaining bank and the...
Demand deposit accounts denominated in domestic currency maintained by overseas banks with domestic banks are called VOSTRO accounts. Vostro means ‘your account with us’. Ex...
Demand deposit accounts denominated in foreign currencies maintained by domestic banks with banks overseas are called NOSTRO accounts. Nostro means ‘our account with you’. Ex...
The foreign exchange market functions around the system of transfers and payments established between international commercial banks. This mechanism operates through nostro and vostro accounts...
The need for a foreign exchange market therefore arises out of the fact that the power of domestic legal tender, circulating in the form of...
It can be defined as, the legal tender applicable in a country outside the domestic area. Thus a foreign currency represents ‘money’ only in the...
FIAT currencies are paper currency notes issued by the Central Monetary Authority of the respective countries, incorporating a promise to redeem these notes at face...