Accounting management help on: Foreign exchange and non bank institutions
Answer:
a) In general, dealers of the foreign exchange are non bank institutions and banks that make the market in the foreign exchange. They sell and buy foreign exchange in wholesale marketplace and re-buy and resell it from users at the slight alteration from wholesale price. b) In general, brokers of the foreign exchange perform as the intermediaries in bringing out the dealers along with, either because the dealer does not wish its identity revealed after the deal or because the dealer search that intermediary and shop the place of market.
c) Arbitragers and speculators sell and buy the foreign exchange for the profit. Arbitragers and speculators sell or buy foreign exchange upon the foundation of which route they think the currency value shall alter in speculative or immediate horizon.d) Treasuries and central banks sell and buy the foreign exchange for various reasons, but most significantly for the intervention in the place of the market. In Direct Intervention, central bank shall purchase (sell) its currency in the place of the market through its reserves of foreign exchange for pushing its value down n up and considered as the general activity by the central banks and government treasuries.
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